Market News

Industries to benefit from cheaper power on fresh regulations

Phyllis Wakiaga
Kenya Association of Manufacturers chief executive Phyllis Wakiaga. FILE PHOTO | NMG 

Manufacturers are looking forward to lower power bills after a 30 per cent rebate is implemented once fresh regulations are gazetted.

However, they will only reap this benefit for 2018 if the gazette notice takes effects before the current tax returns reporting period lapses on June 30.

Kenya Association of Manufacturers chief executive Phyllis Wakiaga expressed optimism that lower power bills would boost firms cash flows.

“We negotiated with the Treasury and agreed that companies enjoy a flat 20 per cent rebate on their power bills and an extra 10 per cent rebate based on increased energy use which would indicate higher production activity,” she said.

The rebate could signal better times for Kenyan companies that could invest the funds in prompt payments for supplies, servicing of debt as well as the creation of new jobs.

Ms Wakiaga said reduced energy costs would cut the price of goods leading to higher sales.

“No one across the world questions the quality of goods made in Kenya but often laments on the price. We are happy with the planned energy rebate and will continue holding more conversation on matters logistics as well as import levies to ensure more incentives are given to manufacturers,” she said.