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Market News

Industry demands Sh200 billion from the Treasury

DEBT
The government’s Big Four development agenda faces imminent failure as local businesses will shun tenders if debts remain unpaid. FILE  

Kenya Private Sector Alliance (Kepsa) has urged the national and county governments to settle Sh200 billion owed to micro, small and medium enterprises (MSME) and spur the economy.

Kepsa deputy chief executive Rachel Muthoga said at this year’s SME Fest in Nairobi that the government’s Big Four development agenda faces imminent failure as local businesses will shun tenders if debts remain unpaid.

“National and county government cartels have ensured only those who bribe get paid while the others face bureaucratic challenges. No private sector player will supply anything to the government in future if payments will continue pending,” she said.

SME Fest convener Muthoni Ngatia said small businesses were blacklisted for non-servicing of loans amounting to Sh25 billion that now form part of 2017’s non-performing loans valued at Sh264.6 billion, up 23.4 per cent from the previous year’s 214.3 billion.

The National Cereals and Produce Board (NCPB) is also withholding Sh3.5 billion for maize deliveries in 2016 and 2017.

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