The Ministry of Investment, Trade, and Industry (MITI) has announced that the US-Kenya trade agreement is expected to be finalized by October. MITI encourages investors, particularly in the manufacturing sector, to capitalize on this deal by establishing operations in Kenya.
This follows an agreement made last October between President William Ruto and US President Joe Biden to accelerate the Strategic Trade and Investment Partnership. The agreement aims to enhance trade and investment between the two nations, stimulate manufacturing, and create employment opportunities.
In addition, Kenya has secured an Economic Partnership Agreement with the European Union (EU), granting duty-free and quota-free access for all Kenyan exports to the EU’s USD 18.0 trillion market.
Despite these promising trade agreements, Juma Mukwana, Permanent Secretary of the Department of Industry, emphasized the need for more manufacturing facilities in Kenya to produce goods for these lucrative markets. He made these remarks during the inauguration of a new smart meter factory in Athi River (Machakos County) by CHINT Global.
Mukwana urged multinational companies to establish manufacturing plants in Kenya to benefit from the preferential treatments provided by these trade deals. He also highlighted the “Buy Kenya, Build Kenya” policy, which mandates that government institutions source 40.0% of their products locally, ensuring a stable market for those who invest in the country and contributing to job creation.
CHINT’s Smart Meter Initiative
Kenya has now become CHINT Global’s fourth hub in Africa, following Nigeria, South Africa, and Egypt, with the establishment of a smart meter manufacturing plant. This facility aims to reduce greenhouse gas emissions in the local market, combat counterfeit products, and minimize power sector theft through AI-enabled smart meters. The 4,000 square meter factory is designed to primarily serve Kenya but is also strategically positioned to supply the broader East African Community, including Uganda, Tanzania, Rwanda, Burundi, South Sudan, Congo (DRC), and Somalia.
The Nairobi factory is CHINT’s 26th globally and 10th outside of Asia. It will focus on producing various advanced smart meters, including the CHD130 Single Phase DIN-Rail Meter, CHS120 Single Phase Smart Meter, and CHS320 Three Phase Smart Meter. These meters cater to both residential and commercial clients, featuring anti-tamper capabilities, flexible installation options, and secure communication protocols. The smart meters will offer real-time energy consumption data, enabling consumers to make informed decisions and save money.
With a production capacity of up to 200,000 meters annually and an efficient quick assembly line, the factory is poised to become a significant player in the regional energy sector. The facility will employ 30 people, with 90% of the workforce being local, and aims for a localization rate of 30%-40% for its products.
“The introduction of CHINT’s advanced metering solutions is transformative for KPLC. These meters will allow us to provide accurate billing, reduce losses, and enhance the efficiency of our energy distribution. This is an investment not just in technology but in Kenya’s future,” said Joy Brenda Masinde, Chairperson of KPLC.
