Kenya Manufacturers to Get 30 Percent Rebate on Electricity Expenses


The manufacturing sector has played a key role in job creation and employment opportunities that have seen thousands of millennials in the country put their energy into a worthwhile course. With the current economic landscape spiced with uncertainties and harsh government policies, the existence of the manufacturing industry has been under constant threats.

Despite an increase in options of access to finance and credit which used to be the main hindrance, the dwindling purchase power is drastically reducing their margins. The high cost of permits and licenses in addition to the escalating cost of living has somehow hindered small scale manufacturers in various parts of this country pushing some out of operation.

The good news is that manufacturers across the country are set to get a tax incentive once a bill allowing industries to deduct 30% of their electricity expenses from their taxable income is gazetted. Trade Cabinet Secretary Peter Munya highlighted the high cost of electricity as one of the major issues that has been bogging down manufacturers who are refraining from investing locally and looking for cheaper alternatives elsewhere.

“Already remits are being given to industries to in terms of what you can consume and are able to recoup a percentage of it. But now we are concluding a more robust reduction in terms of cost of power. With a committee working on that and the cabinet discussions on the proposal we are  able to conclude that we will significantly bring the cost of power down,” noted CS Munya

Speaking during the launch of the Ksh 7 Billion manufacturing plant in Athi River, CS Munya said the government is expecting reforms among them a reduction in the cost of power to make it easy to do business in the country.

The new facility focusing on manufacturing chewing gum is eyeing to increase production and employment of more than one thousand youths in different sector.

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Inzillia is an avid reader and researcher on matters finance, business, government affairs, culture, and human interest stories. Poetry too. Email: