Spend on lo­cal sup­plies hit Sh6.2bn in 3 months – KPLC

The Kenyan mar­ket has been given a pri­or­ity in ma­te­ri­als that in­clude ca­bles, me­ters, trans­form­ers, surge ar­restors, con­duc­tors, con­struc­tion adap­tors and fuse car­ri­ers

The Star (Kenya) - - Voices - CYNTHIA ILAKO @TheS­tarKenya

Kenya Power spent Sh6.2 bil­lion on lo­cal sup­plies in the first three months of this fi­nan­cial year fol­low­ing amend­ment to its pro­cure­ment guide­lines in July, the util­ity firm an­nounced yes­ter­day.

The near-mo­nop­oly elec­tric­ity dis­trib­u­tor in July changed pro­cure­ment rules to source 80 per cent of sup­plies lo­cally to ex­pand and up­grade its dis­tri­bu­tion net­work.

Kenya Power has cut its cap­i­tal ex­pen­di­ture for this fi­nan­cial year end- ing next June to about Sh42 bil­lion from Sh54 bil­lion last year.

“Kenya Power has taken a de­lib­er­ate step to pri­ori­tise pur­chase of equip­ment and ma­te­ri­als from the lo­cal mar­ket to en­cour­age man­u­fac­tur­ers to set up plants in Kenya,” man­ag­ing di­rec­tor Ben Chumo said in a state­ment.

Lo­cal sup­pli­ers have been given a pri­or­ity in ma­te­ri­als that in­clude ca­bles, me­ters, trans­form­ers, surge ar­restors, con­duc­tors, con­struc­tion adap­tors, fuse car­ri­ers and cut-outs, break switches and in­su­la­tors among oth­ers.

The com­pany has for the first time set aside about Sh424 mil­lion for lo- cally as­sem­bled trans­form­ers this fi­nan­cial year, as it looks to im­ple­ment the Buy Kenyan Build Kenya ini­tia­tive. Pres­i­dent Uhuru Keny­atta di­rected state min­istries, de­part­ments and agen­cies to pro­cure about 40 per cent of sup­plies lo­cally un­der the ini­tia­tive –but this is yet to be fully im­ple­mented.

Speak­ing at the on­go­ing Man­u­fac­tur­ers Expo 2016 held at the KICC yes­ter­day, Chumo said the listed firm has stopped im­por­ta­tion of wooden poles from Chile and Brazil.

“We have 54 Kenyan com­pa­nies cur­rently sup­ply­ing us with both con­crete and wooden poles, elim­i­nat­ing the need to im­port these ma- teri­als. This has cre­ated about 540 di­rect jobs for Kenyans and sev­eral other in­di­rect em­ploy­ment op­por­tu­ni­ties,” he said.

Over the last four years, about Sh120 bil­lion out of a cu­mu­la­tive Sh184 bil­lion has been spent on lo­cally man­u­fac­tured elec­tric­ity dis­tri­bu­tion equip­ment.

The new pro­cure­ment guide­lines have at­tracted three in­ter­na­tional com­pa­nies in­volved in set­ting up plants for man­u­fac­tur­ing trans­form­ers. They in­clude Pan African Trans­form­ers, Yo­cean Group Lim­ited and Con­ti­nen­tal Trans­form­ers.

The peak de­mand for elec­tric­ity on 2,341MW grid stands at 1,620MW.

/ENOS TECHE

AKS East Africa man­ag­ing di­rec­tor Amos Si­woi, Kenya Power project man­ager David Mwaniki with man­ag­ing di­rec­tor Ben Chumo at the un­der­ground ca­bling project site in Nairobi on Sep­tem­ber 13

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