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Lack of funds hurts Kenya’s industry drive

Nairobi: Financial hurdles stand in Kenya’s way to joining the industrialised league of nations. As such, a key parastatal charged with propelling the country towards this goal requires more funds. The Industrialisation ministry is now pitching for Sh5 billion to rejuvenate State corporation Numerical Machining Complex.

'The financial support will support the corporation to expand on its melting capacity and also to produce good steel grades through a mini steel plant,' acting Industrialisation minister Amason Jeffa Kingi said on Monday.

Previously known as the Nyayo Motor Corporation, the complex currently produces machines, machine tools and spares. These are meant for supply to small and medium enterprises in the country at affordable costs.

As a result of the lack of funding, there exists a mismatch between melting equipment, casting equipment and machining capacity at the complex. 'This leaves a huge gap in unutilised capacity, rendering NMC to operate like any other normal workshop,' Mr Kingi said during a familiarisation tour of the complex by President Mwai Kibaki and Prime Minister Raila Odinga.

In his speech, the President urged the complex to seek ways of increasing capacity as a first step towards driving the country to industrialisation.

This, he added, would see the facility become a turning point in achieving the government’s economic blueprint.

'The Numerical Machining Complex, therefore, will be the focal point from which sub-contracting and assembly of key machinery, spares and tools will be carried out,' said the President

Mr Odinga called for private sector participation in the facility to help it realise its mandate.

'The project can be salvaged, but entrepreneurship, which is currently lacking, must be put in place. This can be done through public-private partnerships and can be ideal for injecting fresh capital,' said the PM.

Date: 
19 July 2011
Source:
Daily Nation
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