Prime News Ghana

Kenya’s manufacturers to pay lower tariffs for electricity

By Sam Edem
Kenya's Manufacturers
Kenya's manufacturers
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Kenya’s government has disclosed plan to cut electricity tariffs for manufacturers across the country as part of efforts to boost private sector job creation in the East African economy.

The information has it that the manufacturer’s night-time electric utility charges will be reduced by half of the current rates to enable more of these firms pursue night operations and consequently, create additional employment opportunities

Speaking to the media on the development – Principal Secretary at Kenya’s Ministry in charge of electricity – Joseph Njoroge said the initiative was about: “how [the government intends to] create jobs for [the ]people? How do we grow as a country? How do we move from an agro-based to an industrial-based country so that we can be able to enhance our GDP?”

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Currently, manufacturing companies in Kenya are charged 15.70 shillings ($0.1522) per kilowatt hour – a tariff the government regards as uncompetitive compared to others countries like Ethiopia, South Africa, making the country vulnerable to production outsourcing by various firms.

The proposed cuts will run from 10 pm to 6 am daily: a period believed to have majority of Kenyan homes as well as non-manufacturing firms effectively at rest from operations.