Leading paints and coating solutions company; Crown Paints, has reportedly suspended its direct sales arrangement with Kenyan counties.
Crown Paints Kenya PLC which was established in 1958, made the decision as a result of several huge payment delays which have threatened to lead the company into cash flow difficulties.
The Company which is also listed on the Nairobi Securities Exchange, has now decided to carry out the supply of its products via dealers and hopes that the move will protect it from further large delays in payments.
While President Uhuru Kenyatta issued a directive to all counties to clear all their pending bills before the start of the current financial year, the counties have however so far accumulated an estimated figure of 108.4 billion Kenyan Shillings in money owed to contractors and suppliers.
Crown Paints currently operates in Kenya, Uganda, Tanzania and Rwanda, and has grown into a company with an annual turnover of 7.3 Billion Kenyan Shillings in 2017.
The company produces 2 million litres of paint per month and also employs over 1,000 staff members.
