CAK orders retailers, manufacturers, and suppliers to create a code of practice that will become law and enforceable by the regulator.
The move marks tightening of regulation in the industry, prompted by major losses suppliers have incurred from collapsed and struggling retailers.
CAK’s move comes after supermarket operator Tuskys recently defaulted on suppliers to the tune of billions of shillings, just two years after Nakumatt Holdings collapsed with Sh18.5 billion of supplier debt.
The Competition Authority of Kenya (CAK) has ordered retailers, manufacturers, and suppliers to create a code of practice that will become law and enforceable by the regulator.
This is expected to standardise and define several aspects of firms’ commercial relationship such as payment period and what constitutes default.
