President Uhuru Kenyatta has directed a 50 percent reduction in electricity tariff for Kenyan manufactures to enhance their production and job creation.
During his address to the nation after being sworn in as President on Tuesday, he said his government will focus on the manufacturing sector as a “primary vehicle for creating decent jobs”.
He directed that as from December 1 power tariffs for the manufactures would be reduced by 50 percent between 10pm to 6am ‘in line with Kenyans vision of 24-hour economy’.
The President said they will target other subsectors such as the agro-processing, textiles, leather to ensure value addition.
The role of the manufacturing sector in Vision 2030 is to create employment and wealth. The sectors overall goal in the MTP is to increase its contribution to the GDP by at least 10 percent per annum as envisaged in the Vision 2030.
The Kenya Association of Manufacturers (KAM) says the sector contributes between 10 and 11 percent to Kenya’s gross domestic product.
In 2016, the sector grew 3.6 percent in the first quarter of 2016, down from 4.1 percent growth in the first quarter of 2015.
During the annual manufacturing expo, Adan Mohamed, cabinet secretary of the Ministry of Trade and Industry said they plan to expand its manufacturing sector in order to boost exports.
Mohamed said currently 75 percent of all global trade is in manufactured goods, and that the government’s strategic aim can only be implemented through collaboration and knowledge transfer from industry.
“That is the critical role that manufacturing plays in a country. The government is therefore keen on improving the business environment for competitiveness,” he said.