Listed local electrical cables and conductor manufacturer East African Cables, has been awarded the supply tender for electrical cables and conductor’s consignment worth Sh232 million to Kenya Power.
Being a beneficiary of the procurement opportunity, the firm says it is a positive move by the energy provider to support local manufacturers.
According to the firm's CEO Paul Muigai, Kenya Power has steadily increased its efforts to avail procurement opportunities for local manufacturers.
"This is as part of the government’s Bottom-Up Economic Transformation Agenda (BeTA)," Muigai said.
He was speaking during the dispatch confirmation of the first batch of electrical cables and the conductor’s consignment.
He reiterated that in the long term, sustained placing of orders with local manufacturers will have a positive ripple effect on the local economy.
“As we flag off the first batch, East African Cables celebrates the continued support by Kenya Power to local manufacturers, which is a boost for the national industrialisation and economic transformation efforts,” he said.
The firm plans to service the order placed by Kenya Power in several batches running through to the end of the year.
Muigai says the order placed by the energy provider for medium voltage cables will be delivered under a flexible framework supply model.
East African Cables manufactures copper cables and conductors for high, medium and low-voltage power transmission intended for domestic applications as well as industrial power applications.
It also manufactures aluminum conductors and cables used for power transmission and distribution.
Its products are targeted toward the retail market, the minor and turnkey contractor projects and the utility market.
The firm boasts of a sustained growth saying it maintained a growth trajectory in the first six months of this year, sustained by growing demand from retail and wholesale sales for building and construction projects.
The company recorded a 24 per cent growth in profit before tax, attributed to increased sales volumes in the retail sector, sustained market development and communication efforts and improved operating efficiencies.
This is despite the prevailing macroeconomic challenges, including accelerated depreciation of the Kenya Shilling to the US Dollar and constrained working capital.
"We managed to maintain strict operating costs containment strategy, leveraging the entrenched continuous improvement practices," the firm says in a statement.
