In an unprecedented move, Laikipia County Executive Committee has approved guidelines for supporting the local manufacturing sector by giving rebates on electricity and product distribution costs.
The move is aimed at supporting the manufacturing sector in Laikipia to become globally competitive to be able to grow the economy and create more employment opportunities.
The committee chaired by Governor Ndiritu Muriithi last week identified 18 manufacturing fields that will benefit from the rebates program whose objective is to lower the cost of production for locally-manufactured goods.
The manufacturers will enjoy a rebate of 30 percent of their monthly electricity bills with a ceiling of Kshs.100,000 and 50 percent on annual bills with a ceiling of Kshs. 50,000.
According to Finance Executive Murungi Ndai, the county government will also foot 30 percent of the permit and other multiple licenses that local manufacturers are charged to distribute their products in other counties.
These guidelines are in line with the Public Finance Management (Laikipia County Business Legislative Supplement No. 4 – the regulation) and the Programme-based Budget for 2021/22. Mr. Ndai said.
The sectors targeted for the rebate include the manufacture of textiles, apparel, food, beverages, tobacco, leather and its products, wood and wood products, chemicals, pharmaceuticals and botanical products, rubber and plastic products.
Others are the manufacture of non-metallic products, fabricated metal products, electronic, optical products, and electrical equipment, machinery and equipment, motor vehicles, trailers, and other transport equipment, furniture, other manufacturing, mining, and quarrying.
To enjoy the rebates, manufacturers will be required to provide proof that the content or materials for their production are obtained locally, the external competitors, among other parameters. They are also expected to demonstrate the outcome of their requested rebate in terms of lowered prices of their products, market penetration, sales or revenue growth, job creation projections, or any other positive outcome.