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Tag: manufacturing sector

  • Manufacturers seek tax breaks for green transition

    Manufacturers seek tax breaks for green transition

    Kenyan manufacturers are urging the government to consider tax relief measures for firms investing in clean energy.

    The tax breaks according to the Kenya Association of Manufacturers will help offset heavy high costs associated with the green transition.

    “Investors need regulatory predictability. We also need incentives for local green manufacturing and targeted financing mechanisms like green credit guarantees and tax relief for clean production investments,” said Tobias Alando, KAM) Chief Executive Officer.

    According to Alando, policy consistency, public-private collaboration, and affordability will help accelerate 100pc green transition target by the government by 2030.

    Manufacturers also called for the government to address the high cost of power which undermines their edge in the market.

    “It is no longer enough to retrofit lighting or optimize boilers; we must power entire industrial parks with renewable energy, adopt circular economy solutions, and embed sustainability into the DNA of our manufacturing systems,” said Genesio Mugo, KAM’s Energy, Electrical, and Electronics Sector Chair.

    Mugo noted that national goals, such as universal clean cooking access by 2028 and 100pc renewable electricity by 2030 require practical steps to succeed.

    He pointed out that 7.4 million SMEs and women-led businesses struggle with high tariffs, limited green financing, and inadequate technical support.

    They were speaking during the 11th Clean Energy Expo and Conference in Nairobi.

  • We are supporting the manufacturing sector to boost exports, President Ruto

    We are supporting the manufacturing sector to boost exports, President Ruto

    The government is rolling out incentives to attract investors to the manufacturing sector, President William Ruto has said.

    The President said the goal is to grow the country’s manufacturing sector to an ambitious 20 per cent of our GDP by 2030.

    He pointed out that strategic investment in manufacturing will increase exports, create employment opportunities, boost economic activity using local resources and generate attractive returns for investors.

    President Ruto said it is, therefore, unreasonable to provide duty and levy exemptions to importers of goods that can be produced locally.

    “We shall focus our policies and strategy on encouraging increased local production, in line with the Bottom Up Economic Transformation Agenda,” he added.

    The President said Kenya must take advantage of the opportunities provided by the Africa Continental Free Trade Area Agreement, which has created a vast market for the country’s exports.

    “We want to create ecosystems and avenues for us to target the export market. We want Kenya to move away from being a super market for other countries to being a manufacturer of our own goods for export,” he said.

    President Ruto spoke during the commissioning of Cemtech Limited Clinker Plant in Sebit, West Pokot County.

    West Pokot and Uasin Gishu Governors Simon Kachapin and Jonathan Bii, Cabinet Secretaries Rebecca Miano, Kipchumba Murkomen and Salim Mvurya, MPs and MCAs were present.

    The President said the KSh45 billion plant will create hundreds of jobs and expand opportunities for entrepreneurs in the region.

    “West Pokot County is about to experience an economic resurgence associated with the new factory, including higher wages, consumption and increased revenue,” he said.

    He said local manufacturing of clinker and steel has saved the country foreign exchange to the tune of $500 million a year.

  • China’s November manufacturing PMI eases

    China’s November manufacturing PMI eases

    The official purchasing managers’ index (PMI) for China’s manufacturing sector came in at 49.4 in November, down from last month’s 49.5, latest data from the National Bureau of Statistics (NBS) showed Thursday.

    The PMI is a gauge of business sentiment among larger factory operators, with the 50-point mark being the line that separates expansion and contraction.

    The slight decline in November can be attributed to insufficient market demand and the fact that some manufacturing industries have entered their off-peak season, according to NBS senior statistician Zhao Qinghe.

    Nonetheless, the production index for high-tech and equipment manufacturing both came in higher than the 50-point threshold, pointing to a ramp-up in new growth drivers.

    Meanwhile, PMI data for the non-manufacturing sector stood at 50.2, down 0.4 index point from the previous month, indicating a slowing yet continued expansion.

    The services sector experienced a decline in activity in November, as a consumption surge during the holiday season weaned off, according to Zhao. He also noted that the construction sector has posted accelerated growth.

    International organizations are optimistic about China’s development prospects. The Organization for Economic Co-operation and Development expects China’s real GDP to grow by 5.2 percent in 2023, upgrading its forecast of 5.1 percent in September, according to its latest economic outlook published on Wednesday.