The US-Kenya trade deal is set to be ready by October, the Ministry of Investment, Trade, and Industry (MITI) has confirmed while calling on investors in the manufacturing space to take advantage of the deal to set up shop in the country.
- In October last year, President William Ruto and his US counterpart, Joe Biden agreed to expedite the Strategic Trade and Investment Partnership agreement.
- The agreement will increase trade and investment between the countries, boost manufacturing and create jobs.
- Kenya has also sealed Economic Partnership Agreement with the European Union (EU) opening up duty-free and quota-free access for all Kenya’s exports to the US$ 18 trillion EU market.
“We have signed so many agreements but we don’t have factories to manufacture products to be able to sell to these markets,” Juma Mukwana, Permanent Secretary, Department of Industry, said during the launch of a smart-metre factory in Athi River (Machakos County) by CHINT Global.
PS Mukwana called on multinational companies to set up manufacturing plants in the country for their products to enjoy preferential treatments resulting from the deals signed.
“Our buy Kenya build Kenya policy that requires government institutions to buy 40 per cent from locally produced products also offers guaranteed market if you set up shop in Kenya, in turn we create jobs,” he added.
CHINT’S Smart Meter Play
Kenya becomes the fourth hub in Africa after Nigeria, South Africa and Egypt where CHINT Global has set up a smart-metre manufacturing plant. The company is targeting to reduce greenhouse gas emission with its meters in the local market but also fight counterfeits and reduce theft in the power sector through its Artificial Intelligence (AI) enabled smart-metres. The 4,000 square meter factory will primarily serve the local Kenyan market but is strategically positioned to supply products to the broader East African Community, including Uganda, Tanzania, Rwanda, Burundi, South Sudan, Congo (DRC), and Somalia.
The Nairobi factory, CHINT‘s 26th globally and 10th out of Asia, will specialize in producing a range of advanced smart meters, including the CHD130 Single Phase DIN-Rail Meter, CHS120 Single Phase Smart Meter, and CHS320 Three Phase Smart Meter. The meters are designed to meet the needs of both residential and commercial customers, offering features such as anti-tamper functions, flexible installation options, and secure communication protocols. The smart meters produced will provide consumers with real-time data on their energy consumption, enabling them to make smarter choices and save money.
With a maximum production capacity of 200,000 meters per year and a highly efficient quick assembly line, the factory is set to become a key player in the region’s energy sector. The facility will employ 30 people, with 90 per cent of the workforce being local staff, and have a localization rate of 30 per cent-40 per cent for its products.
“The introduction of CHINT’s advanced metering solutions is a game-changer for KPLC. These meters will enable us to provide our customers with accurate billing, reduce losses, and improve the overall efficiency of our energy distribution. This is not just an investment in technology; it’s an investment in Kenya’s future,” Joy Brenda Masinde, Chairperson of KPLC said.
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