1.Ministry of Industry,Trade and Enterprise Development CS Hon. Betty Maina EGH
2.French Ambassador to Kenya H.E Mrs. Aline Kuster-Menager
3.Schneider Electric East Africa General Manager Carol Koech
4.Group tour of the Schneider Electric company on Mombasa Road, Nairobi
MINISTRY OF INDUSTRIALIZATION, TRADE AND ENTERPRISE DEVELOPMENT
OFFICE OF THE CABINET SECRETARY
KEYNOTE SPEECH FOR THE CABINET SECRETARY, BETTY MAINA, EGH DURING THE OFFICIAL LAUNCH OF LOCAL MANUFACTURING OF PRISMA IPM SWITCHBOARD BY SCHNEIDER ELECTRIC ON TUESDAY, 23RD FEBRUARY 2021
Schneider Electric East Africa General Manager, Carol Koech,
French Ambassador to Kenya, H.E. Aline Kuster-Menager,
Former Chairman Kenya Association of Manufacturers, Sachen Gudka
Ladies and Gentlemen,
It is indeed a great pleasure for me to be here with you today, to celebrate this tremendous achievement of your firm. Let me take this early opportunity to laud the Management of Schneider Electric of local manufacturing of Prisma iPM switchboard.
Together with its partners, Schneider Electric will from today manufacture enclosures at its local manufacturing facility in Kenya. Manufacture of enclosures locally will be a great step towards localization of the switchboard and we look forward to localization of more parts.
Local production will reduce the time needed to get the Prisma iPM switchboards to market, lowering costs and making the product more affordable for Kenyan organizations. This aligns with the Kenya Industrialization Policy and Kenya Industrial Transformation Programme (KITP) which identifies manufacturing as a basis for spurring broad-based economic growth and creation of employment. Manufacturing is about believing that we, as Kenyans, can be competitive and ambitious enough, to make products that are as good as any other in the world.
The intended use of the Prisma iPM switchboards board also aligns with two pillars of Manufacturing and Affordable Housing in the Big Four Agenda; where the Government is committed to ensuring that the manufacturing sector contribution to Kenya's Gross Domestic Product grows from 8.5% to 15% and that through the manufacturing component that 1,000,000 new jobs will be created.
During the Seventh Presidential address on the COVID-19 pandemic in May 2020, HE President Uhuru Kenyatta’s Eighth element of the Economic Stimulus Programme was manufacturing which enforced the “Buy Kenya Build Kenya” policy. The President rallied Kenyans to support this initiative which continues to strengthen local SMEs by providing a ready market for homemade goods.
To promote Buy Kenya, Build Kenya, the Ministry formulated the Local Content Policy and enforced the Preferential Procurement Master Roll of No.1 of 2020 comprising 334 products locally made. Master Roll has energy, electrical and electronics included in the list of products. The business community is encouraged to take advantage of this opportunity to meet Government requirements. This will alleviate the competitiveness challenges that impact negatively on manufacturers. The Government continues to provide favorable conditions and incentives to enable local and foreign investors and businesses to thrive.
COVID-19 pandemic for the past year has had serious health and economic ramifications globally and Kenya is not spared. As part of the recovery strategy, the Ministry has prioritized Consumer electronic manufacturing. Consumer electronics manufacturing (and assembly) is nascent in Kenya, with room to identify and promote specific products or parts that Kenya can be competitive on.
Further, to attract investors, both local and foreign, we, as a government, have been investing heavily in power generation, modern roads and railway, education and health. This includes providing affordable electricity, reduced rates on Import Declaration Fee (IDF) and Railway Development Levy (RDL), SME development and policy interventions in other sectors such as Automotive Manufacturing.
The Ministry of Industrialization, Trade & Enterprise Development together with the National Treasury and Kenya Revenue Authority has been receiving and processing applications from Manufacturing for raw materials and intermediate inputs to benefit from reduced rates of import declaration fee (IDF) and Railway Development Levy (RDL). The Ministry will propose positive taxation regimes in the production of locally manufactured products to compete with other similar imports.
My Ministry will task the Anti Counterfeit Agency and Kenya Bureau of Standards to closely monitor the ports of entry to ensure that fight against Counterfeit, Dumping and Sub-Standard Product in the Country is eliminated to support the local production of switchboards.
I welcome Schneider Electric to partner with local TVET institutions such as the Kenya Industrial Training Institute based in Nakuru and which is under my Ministry when undertaking training of its local personnel and partners to ensure that the product delivered to the market meets international IEC standards.
They should also consider local manufacture of more products that they offer in their international market ranging from the simple switches and sockets used at home to the bigger equipment used by power generation and distribution companies and in the data centers as well.
Thank You and God Bless.