Auctioneers lately have been doing a roaring business, courtesy of delayed payments to suppliers by the national and county governments.
A cursory look at the classified pages of the national newspapers gives a picture of the distress traders are facing due to non-performing loans.
Newspapers are making good money from auction adverts, one media house two weeks threw a party for auctioneers to thank them for bringing in business.
President Uhuru Kenyatta’s Madaraka Day order to national and county governments to clear all pending bills is a big relief.
A survey by the Kenya National Chamber of Commerce and Industry shows that the national government, counties and large corporate players owe traders more than Sh310 billion, with the government leading at almost Sh250 billion (80 per cent).
Late payments, coupled with interest cap law that has reduced lending to traders has forced some businesses to close, while others are barely surviving.
Unless the matter is tackled, job losses will be inevitable, leading to major ramifications for the country’s socioeconomic fabric.
We, therefore, hope the president’s pronouncement is not just another of those many publicity stunts, but a genuine move to salvage businesses that have sunk and to keep others afloat.
Quote of the Day:
“It’s no use to decide what’s going to happen unless you have the courage of your convictions. Many a brilliant idea has been lost because the man who dreamed it lacked the spunk of the spine to put it across.”
The American banker and entrepreneur (founded Bank of America) died on June 3, 1949.