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
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.
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