Delayed Payments! A Business Menace  21st Sep 2018

Public procurement constitutes the largest domestic market for goods, services and works. When you include procurement by private sector enterprises, the market gets even bigger.

Worldwide, procurement spending averages 13-20% of Gross Domestic Product (GDP). When it comes to promoting business sales, charity really begins at home: the domestic market is a low lying fruit for businesses.

What was initially a celebration for winning a tender has turned to be nightmare for many micro, small, medium and large enterprises.

The lifeline of a Kenyan travel agent just like any other across the globe is its liquidity. Kenya is largely a credit market with most customers preferring the ‘spend now, pay later’ mode of doing business. Most corporates have policies that require payment to suppliers be done between 30 to 90 days, a situation that makes a bad situation worse. Since Kenya, moved to a fortnight remittance in the year 2016, travel agents struggle to get their clients to pay for tickets in cash or within the 14 days as required by airlines.

“Procuring entities should change their mind sets and treat business owners as legitimate partners and wealth creators. Prompt and timely settlement of genuine bills for goods, services and works is not a favor but the only right thing to do. Working together, we will build thriving families and businesses. It will be prosperity for all.” Says Mr. Wainana, Director at Dream Credit.

Readmore: https://gallery.mailchimp.com/0ded2850d61350be80e35dd05/files/d1bfb757-2d2c-489f-b91c-58dede12747c/DELAYED_PAYMENTS_KILLING_BUSINESSES_ARTICLE.pdf

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