President Ruto introduces special nighttime electricity tariff, slashing costs by 50pc for manufacturers » Capital News
NAIROBI, Kenya, Apr 23 – President William Ruto has announced the introduction of a special nighttime electricity tariff for manufacturers from next month, cutting cost by 50 per cent and removing the need for full daytime cap.
Speaking Tuesday during the Commissioning of Nexgen Packaging Kenya EPZ Limited in Mavoko, Machakos County, Ruto said that the move is part of the efforts to make the country more attractive to investors.
Ruto said that in return, industries and manufacturers, will extend their operations into the night, generating more employment opportunities for Kenyans.
“We have decided to cut electricity costs for investors operating in the country by 50 per cent to facilitate nighttime operations for industries as a strategic move to make their operations more cost-effective and, in turn, create additional job opportunities,” Ruto said.
Commenting on the launch of Nextgen Packaging Kenya EPZ, Ruto indicated that the textile and apparel sub-sector, is now the dominant component of the country’s EPZs, which presently hosts 39 apparel companies, with a total capital investment of Sh 24.8 billion.
Ruto said that these companies employ nearly 60,000 individuals and significantly contribute to Kenya’s exports, particularly to the United States.
He hailed Kenya as a highly dynamic economy characterized by strong, diversified and well-developed institutions in both the public and private sectors.
“Not only has Nexgen Packaging EPZ entered a market with demonstrable present and potential returns, but it has done so by taking advantage of the highly advantageous, investor friendly package of fiscal, infrastructural, and regulatory incentives to enter a highly promising economic sub-sector,” he said.
Highlighting the progress made by the EPZ program in bolstering capital investments and fostering job creation, President Ruto reiterated its pivotal role in driving Kenya’s economic transformation agenda.
Consequently, Ruto said the country relies on the EPZ ecosystem to play a key role in the realization of a broad array of major objectives in relation to his administration’s vision for radical economic transformation.
He added that the 29 apparel companies operating in the country’s EPZ export to the US, have enabled Kenya to export over $7 billion worth of garments to the US duty-free, of which $545 million was exported in 2022.
Further, Ruto said that, Kenya is now the biggest garment exporter to the US in the region, adding that the country’s Africa Growth and Opportunity (AGOA) apparel strategy has stimulated a twelve-fold increase in the value of our exports in 2 decades.
He noted that the country projects the growth of the textile and apparel sub-sector, based on the current potential and investment growth, at a compound annual growth rate of 20 percent.
This expansion is expected to generate over $1 billion in exports and create an additional 200,000 jobs by 2027, according to Ruto.
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