SMEs battle for survival in late payments crisis

Late payments to Kenya’s businesses are giving retailers and other companies an interest-free source of credit that is now choking micro, small and medium enterprises (MSME’s) to death, with banking routes closed, and general liquidity tight country-wide.

A typical business in Kenya is contracted to deliver goods or services to a company on the basis of a Local Purchase Order (LPO) that states the payment period at anything from 30 to up to 60 days after delivery and invoicing.