President Ruto has announced the implementation of a special nighttime electricity tariff for manufacturers, reducing costs by 50 percent and eliminating the need for full daytime electricity consumption. This move is aimed at making Kenya more appealing to investors.
During the commissioning of Nexgen Packaging Kenya EPZ Limited in Mavoko, Machakos County, Ruto emphasized the importance of this initiative in attracting more investment to the country.
By reducing electricity costs, industries and manufacturers are encouraged to extend their operations into the night, leading to the creation of more job opportunities for Kenyans.
“We have decided to cut electricity costs for investors operating in the country by 50 per cent to facilitate nighttime operations for industries as a strategic move to make their operations more cost-effective and, in turn, create additional job opportunities,” Ruto said.
Ruto highlighted the significance of the textile and apparel sub-sector in Kenya’s EPZs, noting that it has become the dominant component, with 39 apparel companies and a total capital investment of Sh 24.8 billion.
“Not only has Nexgen Packaging EPZ entered a market with demonstrable present and potential returns, but it has done so by taking advantage of the highly advantageous, investor friendly package of fiscal, infrastructural, and regulatory incentives to enter a highly promising economic sub-sector,” he said.
These companies employ nearly 60,000 individuals and make substantial contributions to Kenya’s exports, particularly to the United States.
He praised Kenya’s dynamic economy, stating that it is characterized by strong, diversified, and well-developed institutions in both the public and private sectors. Ruto emphasized that Nexgen Packaging EPZ’s entry into the market is evidence of Kenya’s investor-friendly environment, supported by various fiscal, infrastructural, and regulatory incentives.
The EPZ program has been successful in attracting capital investments and fostering job creation, playing a pivotal role in Kenya’s economic transformation agenda.