Kenya Power has told manufacturers to gear up for 24-hour production cycles, saying the problems of high cost of power and insecurity concerns are being resolved.
"We expect that manufacturers will extend production hours because energy is getting cheaper and we are putting up security lights on the streets," managing director Ben Chumo told the Star on Friday.
Manufacturers have previously
opposed a 24/7 production bid, citing high costs of power and insecurity at night.
Chumo said the newly added 280 mega watts of geothermal power from Olkaria will drastically bring down electricity bills.
"Fuel cost alone, per kilo watt hour, has come down from Sh7.22 in August to Sh3.47 last month."
The Kenya Association of Manufacturers said efficiency is required in a 24-hour production chain to increase output and generate more jobs.
“Any additional output and productivity improvements for manufacturers will happen because of cheaper night-time power tariffs and security on the streets,” KAM chairman Pradeep Paunrana said on phone.
The government plan to introduce a “time-of-use” tariff to make manufacturing cheaper at night between 9pm and 5am. Businesses and households usually compete for electricity during daytime.
“We are currently discussing the rates for selling power to manufacturers under the time-of-use tariff,” Chumo said.
The state-run utility firm said it is currently implementing a Sh10 billion street lighting project in Nairobi's major industrial zones, including Industrial Area, Baba Dogo and Kariobangi.
Paunrana said: “Kenya is going in the right direction because lighting up populated areas will drive economic activity. Just having proper lighting at night makes it safer for employees to go to places of work at night."
“Most factories only have daytime shifts currently and adding a night shift will mean more workforce.”
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