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The East African : Dec 1st 2014
4 Special advertising section The EastAfrican TEA@20 NOVEMBER 29 - DECEMBER 5, 2014 Mixed fortunes for Kenya’s manufacturing TURN FROM 2 t≥icity, Egypt pays an ave≥age of $0.03 while South Af≥ican pays $0.05. This has seen Reckitt & Benkise≥, P≥octe≥ & Gamble, B≥idgestone, Colgate Palmolive, Johnson & Johnson and Unileve≥ have eithe≥ ≥elocated o≥ ≥est≥uctu≥ed ope≥ations in the past blaming high p≥oduction costs. Acco≥ding to KAM even othe≥ EAC count≥ies a≥e fa≥ much cheape≥ than Kenya, with consume≥s in Uganda and Tanzania paying 11.8 and 7.4 US cents pe≥ kilowatt of elect≥icity ≥espectively as compa≥ed to Kenya’s 25.7 cents. In May, Kenya Powe≥ th≥ough the Ene≥gy Regulato≥y Commission announced an inc≥ease in fuel cha≥ge on the elect≥icity bill f≥om $0.06 to $0.08 pe≥ unit due to inc≥eased the≥mal gene≥ation. Acco≥ding to ERC, Kenya’s heavy ≥eliance on diesel-powe≥ed gene≥ato≥s to p≥oduce elect≥icity, due to low wate≥ levels in the count≥y’s hyd≥oelect≥ic dam, has been blamed fo≥ the ≥ise in the fuel adjustment costs. Elect≥icity cha≥ges fo≥ big domestic consume≥s ≥ose sta≥ting Decembe≥ last yea≥ afte≥ the afte≥ Kenya NEGATIVES According to KAM even other EAC countries are far much cheaper than Kenya, with consumers in Uganda and Tanzania paying 11.8 and 7.4 US cents per kilowatt of electricity respectively as compared to Kenya’s 25.7 cents. on Kenya, it came out clea≥ly that despite imp≥ovements within the East Af≥ican Community; Kenya has been losing its competitive edge to count≥ies such as Egypt, Rwanda and South Af≥ica, in the manufactu≥ing secto≥. “Manufactu≥ing has been A textile factory at an economic zone near Nairobi Powe≥ ≥aised the consumption cha≥ge fo≥ comme≥cial use≥s by ove≥ 30 pe≥ cent. In Decembe≥’s ≥eview of ta≥i≠s, consume≥s of mo≥e than 200 Kwh saw thei≥ ta≥i≠s ≥ise by a minimum of $0.04 pe≥ unit. Betty Maina, the chief exec- utive o∞ce≥ of Kenya Association of Manufactu≥es says that Kenya’s competitiveness in the global ma≥ket has been on the decline due to the high cost of p≥oduction. “We a≥e seeing a web of gov- e≥nment laws and ≥egulations, administ≥ative p≥ocedu≥es, poo≥ labou≥ p≥oductivity, poo≥ inf≥ast≥uctu≥e and high ene≥gy costs being the biggest challenge to Kenya’s e≠o≥ts to ≥emain competitive,” Ms Maina said. In the 2014 Wo≥ld Banks ease of doing business ≥epo≥t g≥owing at 13 pe≥ cent but in ≥ecent times this has gone down to 10 pe≥ cent and the absences of the expansion of the secto≥ has been const≥ained by ene≥gy. We need to lowe≥ the costs of ene≥gy so that we can achieve a mo≥e feasible indust≥ialisation,” Ms Maina said.
Nov 24th 2014
Dec 8th 2014