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Central Chapter | July 2014

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Central Chapter Kenya

Central Chapter holds AGM

The Central Kenya Chapter held its second AGM since the launch of the chapter on 26th June 2014 at the Thika Gymkhana. The well attended AGM was graced by KRA officials who sensitized members on the full roll out of the Single Customs Territory.

Chapter Chairman Rajan Shah of Capwell Industries gave a detailed report on the engagements and activities that the chapter had embarked in the past one year. These include among others engagements with the County Government, Kenya Power, security agencies and engagement with the National Environmental Management Authority (NEMA). 

 The following were elected to the chapter committee:

1.       Rajan Shah                             Chairman                              Capwell Industries Ltd

2.       David Percival                         Vice Chairman                         Kenya Vehicle Manufacturers

3.       Bimal Shah                             Treasurer                                Broadway Bakery Ltd

4.       Nimeet Dodhia                      Committee Member                   Spinners & Spinners Ltd

5.       Souvik Kamar                         Committee Member                  Booth Extrusions Ltd

6.       Stergios Gkaliamoutsas       Committee Member                  Delmonte Kenya Ltd

7.       Anup Bid                                 Committee Member                  Jetlak Foods Ltd

8.       Kranti Kumar                          Committee Member                  Blue Nile Ltd   

9.       Suhash Shah                           Committee Member                  Kenrub Ltd


Chapter members at the Thika Gymkhana during the AGM

After the AGM business was completed, KRA officials made a presentation on the full roll out of the Single Customs Territory (SCT) which commenced on 1st July 2014.The chapter is organizing to have the KRA officials engage more with members on the SCT. A session about the budget 2014 will also be conducted. The date and venue will be communicated.

Nyanza/Western Chapter | July 2014

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County in Sh4bn deal to end waste collection crisis

The Kisumu County Government has signed a Sh 4.5 billion garbage collection agreement with two foreign companies. The deal signed with the American-based Global Waste 2 Energy and the Integrated Basic Infrastructure System of the Netherlands will also help the county recycle its waste for energy.

City Manager Doris Ombara says Kisumu collects more than 473,000 metric tonnes of waste per day. Speaking during the signing of the contract on Friday, Ms Ombara said urgent measures are needed to help improve collection of garbage, which has become an eyesore.

She said that the cleaning and relocation process, which is expected to take 15 months, will be done once the deal is approved by both the national and county Governments.  “We will produce bio-fuels. We expect the approval process to take at least one month,” she said.

Kisumu Bio-Energy and Climate Change chief officer Lorna Omuodo said they intended to produce bio-fuels from the project. The current energy tariffs, she said, scare away potential investors.

“We, for instance, pay power bills similar to those of profit making organizations, yet the county government provides services to residents,” she said. “The project will assist the county produce about 200 megawatts of power daily, ” she added.

Kisumu is probably among the few cities in the region with dumpsites in the central business district, posing a health hazard to residents and inconveniencing businesses across the fence.

There have been concerns about the dumpsite by the Airports Authority, Kenya Wildlife Service, security agencies and the Moi Stadium management.

Lack of land and conflict of interest on the use of waste byproducts has hindered efforts to relocate the town’s dumpsite. Leaders and residents could not agree on an alternative site to dump the city waste.

Kisumu’s Mega City shopping mall, the largest in the town and housing a number of hotels and colleges, is affected by the uncontrolled dumping.

The recently upgraded Moi Stadium cannot host games because of the dumpsite with the stench affecting other neighboring Organizations, including Kisumu Polytechnic.

 The chairman of the Kisumu County Business Coalition, Mr. Israel Agina, said that urgent action needs to be taken by the minister in charge of environment to close the dumpsite permanently. “We cannot boast of a growing investment profile when our city cannot collect waste efficiently,” he said.


But Governor Jack Ranguma insists that the relocation of the dumpsite is part of the Kisumu Urban Project (KUP), which he said, envisaged a new plan for the lakeside city.

Coast Chapter | July 2014

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>> Salt sector holds multisector forum

>> Mombasa Traffic lights reinstalled

Coast Chapter

Salt sector holds multisector forum

The Salt sector held a multisector meeting in Kilifi attended by various stakeholders including Community Based organizations, the private sector and Government agencies,

Speaking during the meeting KAM Salt Sector officer Eunice Mwanyallo, mentioned that there is need to have dialogue between all parties so as to have peaceful co-existence and that Government participation is key in achieving this agenda.

The main objective of this forum is to enhance joint solution and greater collaboration among various stakeholders. I appreciate National and County Governments’ representation and we look forward to your support of monthly meetings in the next 12 months,” said Eunice. 

The stakeholders present were taken through details, of historical, injustices and how locals in the Coast regions were dispossessed of their land by subsequent Governments up to Independence by Eunice Adhiambo of Ujamaa.

“Injustice includes gross violation of human rights, environmental degradation, labour related issues as well as health issues,” said Eunice.

However it was noted that most of these injustices mentioned are yet to be proved due to lack of research. 

“There have been court cases both from the community as well as the salt companies, and this is not a viable solution since it creates bad blood between the two parties. We have to solve issues amicably with the future in mind,” added Adhiambo  .

Stakeholders present were briefed on the progress made since the time His Excellency President Uhuru Kenyatta visited the region and ordered for investigations on the circumstances on the ground  through the office of Regional Coordinator.

Stakeholders were informed that there is a need to reflect on the future since perpetrators of historical injustices may not be alive to resolve them; hence the newly commissioned Taskforce on Historical injustices should assist this process on issues of land.

Compliance by companies through the guidance of KAM will ensure global standards are met on human rights, environment preservation, labour and health issues.

Stakeholders were also urged to embrace conflict resolution through dialogue instead of the court process.

Speaking during the forum the Deputy County Commissioner Mr. Karani, said that the road to Robinson Island which was crucial to providing security to the beach population has been blocked by illegal salt harvesters. “It’s necessary to evict them from that particular road,” he said.

Mr. Godfrey Wafula of NEMA reported that dialogue enhancement through the office of the Regional coordinator has worked very well and salt companies have been advised on usage of alternative source of fuel instead of firewood. He further indicated that some of the salt companies have contracted some farmers to plant trees on their behalf.

 “Some companies have presented their Environmental Impact Assessment (EIA) reports and were allowed to return water passage to its original course, this is very positive progress,” said Wafula.

Stakeholders from both sides agreed that any intention to expand should be preceded by submission EIA reports by all companies to NEMA. All applications for cutting trees will be submitted to Kenya Forest Service for approval.

Mombasa Traffic lights reinstalled

Mombasa County Government has restored traffic lights that had not been working for a long time. The rehabilitation of the traffic lights is one major achievement among the issues that key stakeholders had raised during the last Governors Round table, held in August 2013.

The areas that needed the traffic lights installed were Saba Saba junction, Kingorani, and Buxton area.  The installation of the traffic lights has eased flow of traffic in the Central Business District and brought some sanity on the road.

Industrial Area Chapter | July 2014

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Industrial Area Chapter

>>Makadara Sub-County holds Security Meeting 

>>Corrupt/Unprofessional County Workers reprimanded in Makadara Sub-County

>>Governor signs the Nairobi County Appropriation Bill Signed into law


Makadara Sub-County holds Security Meeting 

A meeting aimed at addressing insecurity in Makadara sub-county was held on Tuesday, July 22nd at Jimlizer Hotel in Buru Buru. Convened by the Deputy County Commissioner (DCC), Mr. Suleiman Chege, who chairs the security committee and sponsored by Tourism Fund, the meeting was attended by senior security personnel including assistant County Commissioners, Mr. Nehemiah Lang’at, the OCPD Makadara, Mr. Richard Kerich, the OCPD Buru Buru, OCSs from all police stations in Makadara and inspectors.  Others in attendance were Makadara sub-county administrator Ms.  Catherine Gichuba, the DEO Ms. Lucy Ojoo and representatives from various membership organizations, including KAM.

The DCC in his speech emphasized the need for security in the sub-county as it is home to the country’s main manufacturing and economic hub. He pointed out that, in the last RRI period crime rate has dropped by 60% due to increased police presence and commitment to work by the officers. Due to limited resources, he urged residents and businesses to partner with his team to boost security, sentiments that were echoed by the sub-county administrator. G4s’ operations manager, who was also present, committed to work with the team to bolster security by offering the company’s patrol vehicles for use by private guards and armed police officers. Also speaking during the event, KAM’s Industrial Area chapter officer echoed the efforts by the police to apprehend criminals and eradicate criminal gangs, urging the team to identify some corrupt police officers who collude with criminals. A separate meeting targeting manufacturers will be held in August, date to be communicated.

Corrupt/Unprofessional County Workers reprimanded in Makadara Sub-County

Things will not be the same; that was the message the new Makadara Sub-County’s new administrator, Ms. Catherine Gichuba is sending to City County Officers in the sub-county. Noting that businesses are still harassed by county officials, rogue inspectors and rampant cases of corruption, she expressed her confidence that such vices will be thwarted. She promised to pursue various pending infrastructure challenges like sewerage which is currently being expanded by NWS, roads, among others. She was speaking during the Makadara sub-county security meeting.

Governor signs the Nairobi County Appropriation Bill Signed into law

The 2014/15 Nairobi County Finance Bill was signed into law by the Governor Dr. Evans Kidero. This Bill authorized the release of over Ksh 28 billion for the development and recurrent expenditure for the year 2014/2015. Development projects got the lion’s share of the amount as they were allocated Ksh 9.4 billion or 32.7% while Ksh 1.7 billion was channeled to the improvement of road and drainage systems and Ksh 960 million for street lighting. The County expects to receive Ksh 11 billion from the National Treasury as the rest of the amount is sourced from alternative revenue streams. The cost of single business permits and parking charges remain unchanged. For more about this, kindly contact us or check the Nairobi county website. 

Paunrana takes over as KAM Chairman

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Igathe hands over manufacturing leadership mantle to Paunrana

July 24, 2014, NAIROBI: 

The Board of Kenya Association of Manufacturers (KAM) has elected Mr. Pradeep Paunrana as Chairman of  KAM a spokesperson of the Association has said. Mrs Flora Mutahi, takes over as Vice Chairlady.

Mr. Paunrana takes the reins from Mr. Polycarp Igathe who in his two-year tenure led KAM to new heights that include a professional, highly visible and financially stable institution with a state of art new building in Westlands Nairobi. Prior to this appointment Mr Paunrana served as Vice Chairman KAM. He is also the Chief Executive of Athi River Mining.

Mr. Igathe took over  the reins at KAM in 2012 from Mr. Jas Bedi, while he was still the Managing Director of of Haco Tiger brands before moving to head Vivo Energy Kenya. During his two year term, KAM achieved significant milestones such as lobbying government for adequate electricity, a process that will be completed by the end of 2016 and the industrial sector recorded a positive growth in real output of 4.8 per cent in 2013 compared to 3.2 per cent in 2012. He will remain an ex-officio member of the board.

“I am happy that the board has elected Mr. Paunrana as its chairman and Mrs Flora Mutahi as the vice chairman,” said Mr. Igathe, “I have worked with Mr. Paunrana for the last two years as my deputy and he is extremely dedicated to seeing the growth of the manufacturing sector in this country. I think KAM cannot be in better hands, he is an outstanding leader because he has a deep understanding of the issues in the industrial sector.” he added.

As the new chairman of the board of director at KAM, Mr. Pradeep Paunrana, has stated that his vision is the industrialisation of the country through the growth of SMEs, job creation and further expansion of the manufacturing sector. He has so far adopted a sector based approach by focusing on growing industrial sectors. Prior to his appointment he served in various committees of the KAM Board before becoming the vice chairman in 2012 when Igathe took over as the Chairman.

Other members of the 17 member Board include, Flora Mutahi, CEO of Melvins International, Helen Kimani of Kevian Kenya, Mucai Kunyiha of Coopers Kenya, Lutaf Kassam of the Aga Khan Fund for Economic Development, Sachen Gudka of Sankem Interlabels, Mahul Shah of Spinknit Limited, Palu Dhanani of Universal Corporation Limited, Bimal Kantaria of Elgon Chemicals, Bharat Shah of Kenafric Industries, Joseph Lithimbi of Associated Motor Vehicle Assemblers Limited, Marc Engel of Unilever Limited, Kaushik  Shah of Mabati Rolling Mills, Muhoho Kenyatta of Brookside Dairy, Stephen Brooks of homa Lime and Rajan Shah of Capwell Industries.


ENDS

About Mr. Pradeep Paunrana


Pradeep is the Chairman of Kenya Association of Manufacturers. He is also the Chief Executive of Athi River Mining, a large cement manufacturing company in Kenya. 

In 2010, Pradeep was awarded the Africa Business Leader of Innovation in Washington DC by the Africa Investor Group. Pradeep has been invited to share his experiences in building businesses in Africa at  various international forums, industry conferences and business schools. 

Pradeep plays an active role in several policy and advocacy institutions, and has chaired and participated in government task forces in the energy, environment and agriculture sectors. He is a Trustee of the Tree Biotechnology Program, Chairman Nairobi National Park Greenline Trust, and actively champions several charities, including the Company's Rhino Cement Foundation, which makes social investments in education, health and environment - an innovative program empowering company employees to manage corporate social responsibility.

He holds a  MBA from New York University Stern School of Business. When not working, Pradeep enjoys birding, photography, cooking, family adventure holidays and golf.


 

About Flora Mutahi

Flora Mutahi is the founder and CEO of Melvin Marsh International Ltd with extensive local and international experience in strategic leadership, business development and market penetration and marketing. Proven ability to innovate, conceptualize and implement products and business solutions and to lead and mentor others to achieve company and personal goals.On a personal level Flora is married with three children. Flora holds an MBA from the University of Cape Town, BSc Finance and Accounts from the Uk and is a Certified Public Accountant. She also serves on the Board for Seed Hope.

ABOUT KAM

KAM represents over 800 members drawn from the largest manufacturing sector in East Africa. The sector arguably contributes about a quarter of the country’s gross domestic product and employs over a million people are directly and indirectly in downstream activities.


For more information, please contact:

Paida Nyamakanga, Head of Corporate Communication.

Kenya Association of Manufacturers on 0717112767 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Manufacturing Barometer | Quarter 2

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Click here for the Quarter 2 Manufacturing Barometer

KAM holds seminar on Single Customs Territory and New Export Procedures

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KAM members are attending the KAM-KRA Seminar at Panafric Hotel Nairobi today. The seminar was organised to review the Single Customs Territory and New Export Procedures.

Laikipia County holds GRT ahead of Investment Conference

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H. E Governor Joshua Irungu of Laikipia County meets KAM members at the Beisa Hotel where the Laikipia Governor's Roundtable 

Germany comes knocking to the East Africa for Business opportunities

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For Africa to thrive in business, they should observe responsibility and success. This was highlighted during a one day conference in Nairobi hosted by a group of local German organisations led by the former President of the Federal Republic of Germany, Dr. Horst Köhler and attended by the East African entrepreneurs and manufacturers. 

The meeting cohosted by the Kenya Association of Manufacturers and dubbed ‘German Meeting Colloquium’ is the first of its kind and was organised so that German investors can meet with local businessmen to help them discover and discuss business opportunities in the region.

Dr. Kohler said that for Africa to rise beyond its capacity in business, the rule of law, functioning institutions and a fair and efficient tax system should be implemented for east African businesses to thrive.

Dr. Köhler went further to say that the right kind of investment should take the country forward so that jobs are created.  The benefits of this would be better health care, well structured education and better infrastructure. He reiterated the responsibility of African politics to create the necessary and sufficient conditions for both private and public investment and blamed irresponsible African politics for the increase in illicit capital flows that rob the continent of about USD 50 billion annually.

The government has the responsibility of creating a business environment that has less restriction but a lot of freedom. Business freedom will in turn breed a motivated workforce that can deliver sustained profits for both local and international markets.

During the panel sessions, the German delegation discussed with their African counterparts east African related issues such as the economic integration of the EAC, industrial issues, infrastructure and energy development.

Panelists were quick to identify agriculture as another venture that the EAC should invest in claiming that the middle-class is making money due to increased agricultural activity in the region. Discussions also dwelt on the effects of global warming as a challenge to the human race and the international community was asked to implement an effective climate regime to cut down on carbon monoxide usage.

 

How can you detect procurement red flags in your organisation?

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This is the main theme of the training currently going on at Sarova Stanely for the next two days. The Manufacturing Academy has partnered with KPMG to train on procurement fraud which is endemic in many organisations. The participants were drawn mainly from local manufacturing institutions. 

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