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Kenya- Electricity Tariffs Reduced For Manufacturers To Create Jobs

 Kenya is cutting night-time electricity tariffs for manufacturers by half to attract investors and boost job creation and economic growth, a top ministry of energy official said.

The East African nation charges firms 15.70 shillings per kilowatt hour, which is seen as uncompetitive compared with other African nations such as South Africa, Ethiopia, and Egypt.
Joseph Njoroge, the principal secretary in charge of electricity at the ministry, said the reduction will apply from 10 pm to 6 am every day to boost usage of electricity when most businesses and households are shut down.
"It is about, how do we create jobs for our people? How do we grow as a country? How do we move from an agro-based to an industrial-based country so that we can be able to enhance our GDP," he told Reuters on the sidelines of an energy conference.
President Uhuru Kenyatta plans to increase the share of manufacturing to annual economic output to 15 percent from 9 percent.
The government has been trying to boost investments in the sector in recent years with modest success, including the opening of light vehicle assembly plants by Peugeot and Volkswagen.
Taxes account for about a third of electricity tariffs and Njoroge said they will consider whether some of the charges can be reduced.
Kenya has an installed electricity capacity of 2,336 megawatts (MW) with a maximum demand of 1,727 MW, Njoroge said. It has increased the share of the population with access to electricity to 70 percent in the last four years from 30 percent.
Source : business news africa
Posted On: 11/30/2017 12:00:00 AM

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