NAIROBI, Jan. 17 (Xinhua) -- Kenya is planning to put in place a law to boost its retail sector, a government official said on Thursday.
Peter Munya, cabinet secretary of the Ministry of Industry, Trade and Cooperatives, told journalists in Nairobi that the wholesale and retail sector has in the past three years contributed an average of 6 percent to 7 percent of the gross domestic product (GDP), down from 10 percent about five years ago.
"We hope the Trade Development Bill becomes law by the end of 2019 so that it provides guidelines on how to expand the retail sector," said Munya.
Munya noted that the proposed law will provide the retail sector with a regulatory framework to address issues in the retail sector.
"It will provide a platform for all parties involved to monitor and track the adherence of the retail code of practice for effective execution, and in order to provide financial certainty to the sector," he added.
The government official said that the purpose of the code of practice is to encourage self-regulation and harmonize the retailers' and suppliers' ways of engagement and in doing so, also apply international best practice applicable to the Kenyan situation.
"The government, however, encourages suppliers and retailers to enter into individual contracts to determine their contractual obligations and only use the code of practice as a fallback in the absence of a contract," Munya noted.
He revealed that a Dispute Resolution Committee will be constituted by the private sector as a forum to monitor progress and solve any disputes that may arise among the retail trade stakeholders.
According to the ministry, the retail sector has experienced a number of challenges, which if not mitigated, will undermine its contribution to economic growth of the country.
He revealed that the major challenges facing the retail sector include abuse of buyer power by major retailers, late payments, as well as infringement of consumer rights like through misleading representations and selling of unsafe goods.
