Cement firms may lower prices following the reduction in local off-peak power charges. FILE PHOTO | NMG
Summary
- President Uhuru Kenyatta’s directive issued last Tuesday took effect on December 1 where manufacturers will have their electricity consumption during the low peak period between 10pm-6am period halved.
- The 50 per cent power charge reduction between 10pm and 6am will unlock money that could be spent in improving operations hence boosting sales.
Cement companies intend to lower their prices and achieve
regional competitiveness following the reduction in local off-peak power
prices.
Savannah and National Cement brand makers said
they saw demand for local cement rising as Kenya becomes more
competitive as a source of commodity.
Cement maker
Devki Group Raval Narendra said Kenya’s cement would now be more
competitively priced locally and at the regional level.
“Kenya’s
image as an investment destination will improve since its power prices
are coming down. It is easier now to determine lower prices since our
profit margins allow it,” he said.
Speaking to the
Press separately, Savannah Cement managing director Ronald Ndegwa said
the 50 per cent power charge reduction between 10pm and 6am would unlock
money that could be spent in improving operations hence boosting sales.
“That
is money straight into our pockets as we spend between Sh40 million and
Sh50 million a month. We operate 24 hours a day and such a move will
positively impact on our customers,” he said during the firm’s five-year
celebrations at their Kitengela-based plant.
Mr Ndegwa
said the slash amounted to nearly a quarter of their current power
charges which gave them an opportunity to relook at their investments.
He
said their 1.2 million metric tonnes plant that will manufacture road
making cement was still under construction and is slated for completion
late next year.
President Uhuru Kenyatta’s directive
issued last Tuesday took effect at midnight (December 1) where
manufacturers will have their electricity consumption during the low
peak period between 10pm-6am period halved.
Savannah
also reaffirmed their commitment to improve construction work by
signing a pact with the National Construction Authority (NCA) allowing
the firm’s facilities to be used as an experiential training centre for
building contractors and masons.
NCA Board Chairman Stephen Waundo said training of contractors, masons and other building construction professionals was aimed at improving the quality of buildings and other structures that improve Kenyans’ livelihoods.
NCA Board Chairman Stephen Waundo said training of contractors, masons and other building construction professionals was aimed at improving the quality of buildings and other structures that improve Kenyans’ livelihoods.
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