Gov’t is establishing energy rebate formula for manufacturers

Written By: Brian Itava
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The government is finalizing the process of establishing an energy rebate formula for manufacturers.

According to Investment and Industry Principal Secretary, Betty Maina, manufacturers would be offered a favorable electricity tariff when the announcement is made.

The move is expected to enhance production of high but affordable products for both the local market as well as for export.

The cost of production as well as policies and regulations are some of the major factors that significantly affect the manufacturing sector in Kenya.

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The sector contributed 8.4 percent to Kenya’s gross domestic product in 2017, with the government to increase this to 15 percent by the year 2022.

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Among the issues that manufacturers say is inhibiting growth is the high cost of electricity.

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This is despite the launch of a night tariff several months ago, where manufacturers enjoy 50 percent discount on electricity used at night.

Investment and Industry Principal Secretary Betty Maina says more tax incentives would soon be unveiled.

Manufacturers want the government to do more in streamlining and improving the business environment.

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Kenya Association of manufacturers Vice Chair Mucai  Kunyiha says the Small Medium Enterprises are the major drivers of the manufacturing sector and more focus should be extended to them.

Among some of the Manufacturing Priority Agenda that stakeholders are looking to contribute this year includes, job creation, increase the value and volume of exports and enhancing market access for SMEs.

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