A Kenyan supermarket.[Photo/AdavanceGlobalCapital]
Parliament is set to draft new legislation meant to protect farmers and suppliers from big retailers.
According to parliamentary Trade, Industry and Co-operatives Committee Chairman Kanini Kega, suppliers and farmers have almost no bargaining power against the big supermarkets incase of insolvency.
Kega stated that his committee is preparing a Bill that will see retail chains operating in Kenya deposit a specified sum in a fund held by the government to ensure suppliers & other creditors are paid should the retailers discontinue operations.
“We must have a threshold of capital for starters deposited as security to act as cushion to suppliers in case a supermarket goes down.” said the MP.
He noted that they are working on a bill meant to discourage importation of goods that can be produced locally.
This he said will foster the value addition of locally produced commodities especially agricultural products.
This comes at a time when two of the country’s largest retailers are facing numerous challenges leaving suppliers & other creditors out of pocket.