Nicholas Ngetich assist in
controlling a metal that is being used for construction of a storied
house at Maziwa road in Kakamega by Zenith Steel Fabricators Ltd. [Photo: Duncan Ocholla/Standard]
Local steel manufacturers have got a boost after global suppliers agreed
to consistently supply them with the right raw materials on time to
power Kenya’s industrial base.
It will also promote President Uhuru Kenyatta’s job creation plan.
Erratic supply of billets, wire rolls and hot-rolled coils has been one
the reasons most steel plants have been operating at below capacity,
with most forced to shed jobs as a result.
However, suppliers drawn from 15 countries last week promised a steady
supply of the materials. This was during the International Steel Forum
in Nairobi on Friday.
“The suppliers agreed to comply with local requirements to ensure good
quality local materials are supplied,” said Bobby Johnson, the chairman
of the metal sector at the Kenya Association of Manufacturers. The steel
sector in Kenya employs 22,100 directly and another 75,000 indirectly,
figures that President Kenyatta would like to see go up as part of his
Big Four Agenda.
According to the Ministry of Industrialisation projection, a single
steel plant of a capacity to produce 350,000 tonnes of steel per year
can generate over 10,000 jobs. It is estimated that the country spends
over Sh60 billion shillings annually on importation of steel.
Direct and indirect consumption of steel in Kenya is also projected to
increase as the country embarks on the development activities as
envisioned in the Vision 2030 such as Lamu port development, railway and
roads and housing projects among others.
The forum focused on providing partnership opportunities to boost the
sector’s competitiveness and developing frameworks of collaboration
across the industry. It was attended by 187 delegates.
Metalwork is one of the sectors that President Kenyatta has targeted in
his bid to create jobs by revamping the manufacturing sector.
The State is targeting Sh1 billion of investments into the iron and
steel sector as part of its plans to increase the share of manufacturing
to 15 per cent of the Gross Domestic Product.
Mr Johnson noted that the support of the Government in protecting local industries has boosted local production.
National Treasury in the current financial year sought to protect the
sector by slapping cheap imported finished iron and steel products with
high import taxes.
KAM Chair Sachen Gudka said the establishment of stronger partnerships
with global investors, would be vital to attain the desired growth in
the sector and the economy. “The future of the sector looks at the
development of Smart Infrastructure. Through data and employment of
sustainable strategies the sector will spur the productivity of the
country and the continent for the next generation,” said Gudka at the
event.
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