Manufacturers deplore high power bills inflating production cost

A section of manufacturers from Murang’a county have deplored the high cost of production that ups the prices of their products.

They cited exorbitant power costs as one of the main impediments to the growth of the sector, despite the government making industrialisation one of its pillars of development.

Giant Maize Millers managing director Agnes Irungu on Saturday said manufacturers are slapped with power bills amounting to millions of shillings, which she said make the cost of production too high.

To keep their plants afloat, Irungu said many investors are forced to increase the prices of their products and that, in turn, hurts their customers. She spoke during the opening of Nicey maize millers in Kangari, Kigumo subcounty.

Irungu asked the state to promote green energy as a way of averting the high cost of production, which would lessen the burden on common Kenyans who are struggling with the effects of the Covid-19 crisis.

“We can import solar panels and start producing our own energy to lessen our expenditure,” Irungu said.

She, however, noted that numerous manufacturers have applied for licences to produce green energy but the process has taken too long.

Late last year, the government introduced a law intended at policing the solar energy sector, as a major shift by Kenyans from Kenya Power provided energy was experienced.

The law prohibited individuals from the importation, manufacture, sale, or installation of solar PV systems or solar PV system components without a valid licence issued by the Energy and Petroleum Regulatory Authority.

Irungu said the manufacturing sector is crucial to the economy and requires the government’s support. She further urged the government to support farmers with training to help them produce good-quality raw materials.

“The Kenya Bureau of Standards quality for maize is quite high. For farmers to produce such quality, they need consistent training to equip them with the right farming techniques,” she said

Irungu said that would ease manufacturers’ bid to access good quality raw materials for processing.

Peter Mwangi, the managing director of Nicey maize millers in Kangari, Kigumo subcounty, also raised concerns over the high costs of processing.

He urged the government to ease the process of installing solar panels as a way of boosting manufacturing in line with its Big Four agenda.

Mwangi also lamented the numerous levies imposed on manufacturers and proposed that they be collapsed into one. His plant, which was recently established, provides jobs to over 200 youths and has the capacity to process 1,000 bags of maize daily.

“This plant has a huge labor force and will be sourcing for maize locally to support farmers,” he said.

He said setting up such plants in the rural areas makes it easy to source raw products while impacting local economies positively.

“Kangari is a swiftly growing town with good infrastructure and now there is a highway being constructed to Nyandarua which will encourage cross trading between the two counties,” he said.

The highway starts at Kinyona in Kigumo and goes through the Aberdare forest.

It shortens the journey to Njabi-ini in Nyandarua to only 25 kilometres compared to the hundreds of kilometres previously traveled through the Naivasha highway.

Equity Bank MD Gerald Warui, for his part, said his institution is willing to work with investors to help them establish manufacturing plants.

Julius Mwaura, a resident of Kangari area, said such factories should be encouraged at the grassroots.

“This plant will greatly boost the amount of money in circulation every month with the many job opportunities it is offering,” he said.

He urged more investors to pitch camp in the county which has a vast variety of agricultural products such as bananas, avocado and even milk.

Mwaura also appealed to the county governments to upgrade feeder roads as a way of attracting investors.

(Edited by Bilha Makokha)