Kenya Association of Manufacturers, Association of Kenya Suppliers (AKS) and Retail Trade Association of Kenya (RETRAK) have today signed the Retail Trade Code of Practice to guide Prompt Payment in the Retail Sector.
The purpose of this Code of Practice is to encourage self-regulation and harmonize the retailers’ and suppliers’ ways of engagement and in so doing, also apply international best practice applicable to the Kenyan situation.
Speaking at the Signing Ceremony, Trade PS, Dr Chris Kiptoo noted that the retail sector is among the six priority sectors that has been singled out in the Kenya Vision 2030 to support the economic transformation of Kenya’s economy.
“The retail sector suits perfectly to the economic pillar of the vision 2030 by the fact that it seeks to improve the prosperity and standards of living of the Kenyan people by increasing the GDP growth rate.
The Government, however encourages suppliers and retailers to enter into individual contracts to determine their contractual obligations and only use the Code of Practice as a fall back in the absence of a contract,” added Dr Kiptoo
The retail sector remains a key strategic partner to the manufacturing sector. This is through its critical role in providing local market access for locally produced goods.
Speaking during the Forum, KAM Chairman, Mr Sachen Gudka noted that cash flow is essential to the economy, and for businesses to thrive, its guaranteed stream and circulation are critical.
“Prompt payment is critical to the performance and operations of any business. Paying promptly ensures the necessary cash flows are available for businesses to operate.
Today’s signing of this Code is a great step towards securing the future of our economy and marks the strengthening of existing partnerships towards this. It is also a positive indicator that the private sector in the country is embracing international best practice to advance our economic goals,” added Mr Gudka.
The State Department of Trade, in collaboration with stakeholders has also developed Regulations for the sector so that in case of failure for self-regulation there exists a fallback mechanism.
These Regulations will be anchored on the Trade Development Act whose process of enactment is at an advanced stage.