For the longest time suppliers have decried delayed payments from companies that they have gotten in business with forcing most of them to drop out of business and others to wallow in huge debts that have cost them their resources in settling them up.
President Uhuru Kenyatta today signed into law the amended Competition and Insurance Bills 2019, now an Act of Parliament was submitted to the National Assembly during the reading of the 2019/2020 budget and is intended to separate the legal provisions on abuse of buyer lower from those on abuse of dominant power.
The competition Authority under this new law is empowered to review contracts and agreements between suppliers and buyers to determine cases of abuse of buyer power. The Act further empowers the Competition Authority of Kenya to require sectors which have a potential for abuse of buyer power to develop a binding code of practice.
Insurance (Amendment) Act, 2019, signed together with it introduces provisions for the protection of policyholders where an insurer is in distress and the assets are put in statutory management. The new law empowers the Insurance Regulatory Authority to prescribe the manner of submission of various kinds of returns and provides for a penalty for late submission, which shall be payable into the Policyholders’ Compensation Fund.
To strengthen the regulatory framework of the insurance industry particularly premium collections and payment of claims, the amended insurance law introduces requirements for insurance companies to regularly submit premium levy returns and claims payment returns to the Insurance Regulatory Authority.