Kenya is a challenging country for suppliers due to the time it takes to process invoices for goods delivered. A new report by Duplo, a payments platform for African businesses, shows that over 80% of Kenyan companies take more than a day to process invoices, and the waiting time can take nearly a year for some firms before the money is received. This highlights the struggles suppliers face to get their dues after the delivery of goods. South Africa has a better showing, with 39.9% of firms taking a day or less to process invoices compared to Nigeria's 39.7% and Ghana's 38.4%.
The agricultural sector, branding and communications, and consumer goods and retail are the most efficient invoice processors, mainly due to streamlined operational procedures and efficient administrative practices. Companies with longer invoice processing times may need to consider modernization or automation, including invoice automation, personnel training, and revising internal processes for greater efficiency. The engineering, beauty and wellness, and finance sectors also experience noticeable delays in invoice processing, with a significant proportion of invoices taking over a week or even a month to process.
This presents a significant challenge for businesses that are often unable to maximize opportunities due to cash flow restrictions induced by complex payment flows. Kenya is leading in payment automation, with 83.4 percent of businesses indicating their payment system is either fully automated or semi-automated, compared to Nigeria, South Africa, and Ghana at 79.9%, 71.7 percent, and 67.2 percent, respectively.
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