Kenya Targets Global Manufacturers as Trade Deal with US Beckons
The US-Kenya trade deal is on track for completion by October, according to the Ministry of Investment, Trade, and Industry (MITI). This development presents a significant opportunity for investors in the manufacturing sector to consider establishing operations in Kenya to leverage the benefits of the impending agreement.
During the launch of a smart-meter factory in Athi River (Machakos County) by CHINT Global, Juma Mukwana, the Permanent Secretary of the Department of Industry, emphasized the importance of having local manufacturing facilities to meet the demands of international markets. He urged multinational companies to invest in establishing production plants in Kenya to take advantage of preferential treatment under the trade deals.
With the buy Kenya build Kenya policy in effect, which requires government institutions to procure 40 percent of their products locally, setting up manufacturing facilities in Kenya not only guarantees a market but also contributes to job creation in the country.
CHINT Global, a leading company in the energy sector, has chosen Kenya as its fourth hub in Africa for smart-meter manufacturing, following Nigeria, South Africa, and Egypt. The newly inaugurated 4,000 square meter factory will cater primarily to the local Kenyan market and is strategically positioned to serve the wider East African Community, including countries like Uganda, Tanzania, Rwanda, and more.
The focus of the factory will be on producing advanced smart meters that are equipped with Artificial Intelligence (AI) technology to monitor energy consumption accurately. These smart meters offer features such as anti-tamper functions, flexible installation options, and secure communication protocols, catering to both residential and commercial customers.
With a production capacity of up to 200,000 meters annually, the factory is poised to play a significant role in the region’s energy sector. Employing 30 individuals, with a localization rate of 30-40 percent for its products, the facility aims to contribute to Kenya’s energy efficiency goals.
The introduction of CHINT’s advanced metering solutions is expected to bring about positive changes in Kenya’s power sector. By enhancing billing accuracy, reducing losses, and improving energy distribution efficiency, these smart meters are not just a technological investment but also a step towards securing Kenya’s energy future, as emphasized by Joy Brenda Masinde, Chairperson of KPLC.
In conclusion, the establishment of the CHINT Global smart-meter factory in Kenya exemplifies the country’s commitment to attracting global manufacturers and advancing its position as a key player in the energy industry. With the impending US-Kenya trade deal, the opportunities for investment and growth in Kenya’s manufacturing sector are poised to increase, benefiting both the economy and the local workforce.
