The chief executive officer of the Kenya Manufacturing Association (KMA) Phyllis Wakiaga has weighed in on delayed payments and the poor money circulation in the country.
Speaking in an interview on a business program aired on KTN, Wakiaga called for legislation that will make it mandatory for suppliers to be paid their dues in good time.
In her remarks, the KMA boss appeared to suggest a connection between delayed payments and poor money circulation.
According to her, a prompt payment legislation would go a long way in ensuring that there is a healthy circulation of cash in the economy.
"Delayed payments are a big problem and delay occurs when county governments or the national government is not paying suppliers and the in turn the suppliers or business do not pay each other. It becomes a vicious cycle. One of the things we are proposing from a policy and legislative angle is first of all to have a prompt payment legislation, " she said. (0:00-0:20)
Her intervention comes in the wake of concerns about poor money circulation in the country.
President Uhuru Kenyatta a few weeks ago touched off a firestorm of criticism after he reportedly wondered why Kenyans were broke.
Part of the reason advanced by a section of economic experts as to why Kenyans are broke is the delay in payments owed by the 47 counties and the national government to suppliers.