Hope for Kenyan Manufacturers

The Kenya Association of Manufacturers has warmly welcomed the government’s plan to reduce power costs by 30%. 

Speaking to a local newspaper on Monday, the Kenya Association of Manufacturers chief executive, Phyllis Wakiaga, said that the move would reduce the manufacturing cost in Kenya by a margin of 5%, which could go up to 10%.

Wakiaga also noted that the reduction in the cost of manufacturing would be beneficial to Kenyan consumers who suffer the high cost of goods when manufacturing costs go up. 

In a statement issued on January 7th,, the ministry of energy and petroleum announced their efforts in ensuring that the promised 15% tranche in power costs is effected in the first quarter of 2022.

Power prices in Kenya will retail at Sh16 per kWh, Uganda Sh17 and Sh11 in Tanzania. 

Consequently, the reduction in power costs by up to Ksh4 per KWh will make the cost of power cheaper than that of Uganda but still expensive as compared to Tanzania. 

Ethiopia still has the cheapest power tariff standing at Sh2 per KWh.

This reduction in power and manufacturing costs in Kenya could see Kenyans benefit from low prices of goods. Still, high taxes and unpredictable tax regimes by the national and county governments would prevent Kenyans from fully benefiting. 

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