Investors to enjoy cheap electricity at Naivasha SEZ
Noel Wandera @NoelWandera5
Investors setting shop at the Naivasha Special Economic Zone (SEZ) will be charged five cents per kilowatt of power, the lowest in the market, the Kenya Association of Manufacturers (KAM) chairman Sachen Gudka has said.
Gudka said the charges will act as “a significant incentive” for investors to establish their businesses at the industrial park.
The park, constructed on a 1,000-acre piece of land in Mai-Mahiu area within Nakuru County, will enjoy special tax and infrastructure incentives to facilitate a wide range of activities such as storage, export and re-export. It will tap its power from geothermal energy abundant in Naivasha
Construction of the park began in December, after the Cabinet approved a Sh6.9 billion budget in September for the development of the facility.
It will host an Inland Container Depot (ICD) and a railway marshaling yard. This is in addition to an infrastructure logistics zone and a public utility area to help process cargo transported from the Mombasa port through the Standard Gauge Railway.
Production cost
The new tariffs will be greeted with relief by manufacturers, whose goods are uncompetitive in the regional market due to their high costs, associated with high energy costs.
Gudka was speaking yesterday on the sidelines of a three-day Kenya-Japan business forum where a delegation of 90 executives from 60 Japanese firms drawn from the services, agriculture, food and beverage, paper and board, energy and electricals, automotive and building and construction are on a fact finding mission with a view to investing in the country.
Gudka said collaboration and strategic partnerships between Kenyan and Japanese companies will be a key driver towards the achievement of the Big Four agenda which aims to increase the sector’s contribution to the gross domestic product to 15 per cent by 2022.
“Fostering greater strategic collaboration between local and foreign manufacturers, government and social sectors will be a critical driver of innovation and economic growth in 2020 and beyond.
The more we increase our collaboration in driving the efficiency of our local industry, not only will we realise both our economic goals but also create wealth and increase the purchasing power of all citizens,” he said.
The Japanese businessmen will visit up to five factories to get a view on the ground.
“We expect to see two to three transactions come through after these discussions. In case they encounter any issues, KAM will guide through the registration process,” said Gudka.
Binoy Meghraj, the Meghraj Group Vice Chairman said foreign direct investments will drive industrial growth in both countries.
“Kenya is a fast-growing economy. Through this partnerships, companies will enjoy transfer of information on business processes from the factory floor to management as well as investments,” said Meghraj.
