• Suppliers could trade promissory notes with banks.
• Government nonpayment is putting Kenyans out of business.
Gatundu South MP Moses Kuria is introducing a private members bill into the National Assembly to ensure government pays suppliers within 30 days (see P6).
Kuria can be a loose cannon but this time he is on target.
The Kuria Bill will instruct the government to give suppliers and contractors a promissory note if it fails to pay them within 90 days. The promissory note would carry a due date. Suppliers could then trade the promissory note with a bank to get cash that would be discounted depending on the maturity period.
The government won't like the Kuria Bill. According to Chamber of Commerce chairman Kiprono Kittony, the government owes suppliers over Sh250 billion that is long overdue. The government would lose this interest-free credit if Kuria's bill becomes law.
Around 500,000 small businesses are in trouble and getting poor credit ratings because government has delayed or defaulted on the money it owes them. Kenyans are losing their jobs as a result. That is grossly unfair. Why should Chinese contractors be paid before Kenyans contractors?
MPs should support the Kuria Bill when it comes to the House.
Quote of the day: "Tis no sin to cheat the devil."
The English writer was born on April 24, 1731