Laikipia County Government has set aside about Sh.12 million to mitigate energy costs for manufacturers in the region aimed at upscaling their production capacity.
County Executive Committee Member (CECM) in charge of Finance Murungi Ndai speaking to the press at his Nanyuki town office said they developed a guideline where they would pay back the manufacturers in the region 30 per cent of the total cost of energy used in producing their products.
“We have been given a mandate by our energy regulators to come up with a policy so that we can be able to support our manufacturers,” said Ndai, noting that the reason they decided to support the manufacturers is to ease their huge cost of energy that has rendered some out of business.
He further said that the cost of energy in Kenya is expensive at Sh.26 per kilowatt-hour as compared to other countries like India who charges Sh.9 per kilowatt-hour.
“There is no country in this world that has ever grown into a manufacturing giant without lowering the electricity cost. Electricity cost is what is pushing our businesses down and at the same time making it hard to thrive in the sector. We want to stop,” Ndai noted.
He said there would be application forms where the manufacturers seeking for the support would prove they are engaged in the manufacturing sector and at the same time use local raw materials in their operations.
Ndai revealed that they would also support manufacturers within the county in paying business permits and license fees charged by other counties when selling their products.
“Some counties have very high fees for people selling goods from other counties, Laikipia county will give manufacturers up to 50 per cent, for instance if you are charged Sh.50,000 we will pay Sh.25,000 on behalf of your business,” Ndai promised local manufacturers.
By Muturi Mwangi