, NAIROBI, Kenya, Jun 23- President Mwai Kibaki has directed the Energy Regulatory Commission to revise its current formula for determining electricity tariffs to make movements in power costs predictable.
President Kibaki said on Wednesday that this would ease the burden of high power costs on the private sector.
“To address issues in the energy sector, additional funds have been committed towards increased investment in alternative sources of energy,” the president said at a luncheon to cerebrate the 50th Anniversary of the Kenya Association of Manufacturers (KAM).
He pointed to the 2010/2011 budget which he said paid attention to the infrastructure and energy challenges faced by the traders but said that significant financial allocations had being made. The funds will be utilised for infrastructural development to lower production costs.
These, he said, was part of the measures that his government was undertaking to ensure a conducive climate for the business to operate in and in effect the growth of the economy.
In addition, he pledged that the Government would also accord preference to local firms that manufacture and assemble goods in priority areas such as textiles, furniture and motor vehicles in annual government expenditure in order to create strong linkages between the manufacturing sector and small and medium scale enterprises.
All these measures were aimed at enabling the country to attain its long term objective of transforming the country into a middle income state in the next two decades.
“The Government will continue to put in place strategies, incentives and flagship projects to ensure that the vision’s goals are attained. The Government will also constantly review the business environment in order to make it more conducive,” said the Head of State.
This he appreciated would only be achieved if the country has laws that would ensure good governance and hence the reason why the government was pushing for the passing of a new constitution.
“When passed, the proposed Constitution will greatly allow for greater accountability on the part of the government as well as more citizen participation in all sectors of the economy. These will create a conducive environment for the emergence of a vibrant private sector. The new constitution will, therefore, be a big boost to the private sector,” President Kibaki said.
Before concluding his remarks, the Head of State urged the private sector to take advantage of the many opportunities that will be created with the coming into force of common market protocol on July 1.
“I wish to encourage you to take advantage of the common market to drive exports to the region and in turn create employment for our people. My government pledges its full support and best wishes as we take this bold step of a common market,” he said.