Kenya | Manufacturing Sector Thread

[Mistah ILL WILL]

Varsity eyes first multipurpose car

By Titus Too

Chepkoilel University College will soon launch a project to manufacture a low-cost seven-seater vehicle.

College Principal Prof Elijah Biamah disclosed that arrangements have been made with a Chinese company for the launch later this year as part of Vision 2030 development plan.

Biamah said the design is a brainchild of a Kenyan industrial designer Patrick Kiruki based in California, USA.

The car, he said, would perform multiple roles including small scale ploughing, harrowing and also as an ambulance among others.

He said the car, whose parts will be produced locally would have an engine capacity of between 350cc and 800cc and would cost between $1,000 and $5,000 (Sh82,850 and Sh414,000).

Biamah made the revelation during the opening of a two-day National Physics Forum at Chepkoilel University College, Eldoret.

The forum was to brainstorm how to mainstream physics in national development.

The Principal said physics play a major role in engineering, agriculture and medicine among other fields that contribute to national development.

He said to propel the economy, there is need for good policies to empower farmers through value addition, research on production techniques and climate change and its effects on agriculture.

Delegates also expressed concern over the declining number of students taking physics at university level.

[tallglassy]

[Dhuks]

Originally Posted by Mistah ILL WILL

Varsity eyes first multipurpose car

By Titus Too

Chepkoilel University College will soon launch a project to manufacture a low-cost seven-seater vehicle.

College Principal Prof Elijah Biamah disclosed that arrangements have been made with a Chinese company for the launch later this year as part of Vision 2030 development plan.

Biamah said the design is a brainchild of a Kenyan industrial designer Patrick Kiruki based in California, USA.

The car, he said, would perform multiple roles including small scale ploughing, harrowing and also as an ambulance among others.

He said the car, whose parts will be produced locally would have an engine capacity of between 350cc and 800cc and would cost between $1,000 and $5,000 (Sh82,850 and Sh414,000).

Biamah made the revelation during the opening of a two-day National Physics Forum at Chepkoilel University College, Eldoret.

The forum was to brainstorm how to mainstream physics in national development.

The Principal said physics play a major role in engineering, agriculture and medicine among other fields that contribute to national development.

He said to propel the economy, there is need for good policies to empower farmers through value addition, research on production techniques and climate change and its effects on agriculture.

Delegates also expressed concern over the declining number of students taking physics at university level.

The idea of a car is nice but why does it need to multi-task?

[desert burner]

Originally Posted by Dhuks

The idea of a car is nice but why does it need to multi-task?

totally agree with you

[Mistah ILL WILL]

sounds like transformers ...... gives it more practicability ...

[xJamaax]

Lol@ multitasking

It's something great I think.

[Dhuks]

Originally Posted by xJamaax

Lol@ multitasking

It's something great I think.

Think of the vehicles that multitask and you get my drift. And dont forget a tractor is a road going vehicle!

[Adm.Adama]

The Mobius car company beat them they built an off-road and regular road vehicle that consisted of a mechanic and a welder and a project manager. The government can learn from Mobius so we can atleast have two Kenyan built vehicles serving east africa.....How is the project going on this car

[mwathani]

East Africa will soon become energy secure. And here we are talking about the energy mix-both fossil and renewable energy sources. This means that power is available, reliable and affordable. Coupled with a vibrant manufacturing sector, a well educated population and skilled manpower, East Africa will soon become Africa’s manufacturing hub.

http://eaers.blogspot.com/2012/05/ea...e-africas.html

[xJamaax]

Great news Mwathani!

Good to see East Africa positioning itself to be one of Africa's major manufacturing spots.

[tallglassy]

EASY...http://eaers.blogspot.com/2012/05/ea...e-africas.html

EAST AFRICA is on the path to becoming an energy secure region. And here we are talking about the energy mix including both fossil fuels and renewable sources of energy. Energy security is defined as physical availability, reliability and affordability of energy sources.

East Africa qualifies in all respects. Picture this: Oil and natural gas finds are being updated almost weekly and reports of investment in exploitation of renewable sources energy have become regular in the region. In short, all sources of energy are available in one region. That is an energy secure region. And such a region soon becomes a manufacturing hub due to low cost of energy and its reliability

At the rate at which oil and Gas finds in the region are being are being announced, the region could soon stand neck to neck with the giants in the world. According to the wire service Reuters, the US Geological Survey estimates that 253 trillion cubic feet of natural gas lie off Kenya, Tanzania and Mozambique compared to 186 trillion cubic feet for Nigeria, Africa's biggest energy producer. Both Tanzania and Mozambique are blazing the trail in natural gas exploration in the region. So far in excess of 100 trillion cubic feet has been found in the two countries.


Although oil discoveries are not anywhere near- the giants in West Africa. Estimates show that east Africa could hold an estimated 6 billion barrels of oil compared to 60 billion in Nigeria. However, this is work in progress and estimates could change with new finds. For instance, in Kenya, the latest country to discover oil, the available quantity has been updated twice in a month from 20 metres of net pay load to 100 Metres at depths of 1500 Metres. The explorer, Tullow oil Plc. says they expect to drill up to depths of 2700 Metres. More oil could be found, says the company in a statement.


Uganda also has one billion barrels proven reserves but its potential is estimated at between 2.5 billion barrels and 6.0 billion barrels. Uganda proposes to produce some 150,000 barrels a day in the near future.
Apart from Oil and natural gas, east Africa is also exploring other sources of electric energy. Kenya is the leader in this respect. The country is estimated to have the potential got generate some 3000MW of wind power, of which an estimated 500MW will come on stream by 2016. It is also estimated to hold 7000MW of geothermal energy although some sources indicate that the potential is higher. So far, the country generates 205 MW of geothermal power –the highest in Africa but still too low considering its potential.




Consequently, there is a flurry of activity in geothermal exploitation. The local power generator; Kengen plans to generate 5000Mwof geothermal power by 2030. This works to an estimated 280MW every year over the next 18 years. Each 280MW units is said to cost US$1 billion. That is neat pile of cash. Already a 280 Mw Unit at Ol-Karia IV is under construction.


In addition, the government owned Geothermal Development Corporation, GDC, plans to invest US$750 million to develop a 1600MW steam fields at Silali in Menengai in the Rift Valley. The fields will be developed in three phases. Phase one will generate 400MW at a costs of US$150 million. The funds were mobilised from Africa development Bank in the form of loans and grants. Some $124.5 Million is a loan while the balance some $25 million is a grant. The steam fields, to be completed in 2016, will be concessioned to independent Power producers to generate power from. This will make it even cheaper for power generators to invest in generating capacity. The result is power that is at least 50 per cent cheaper than it coasts now.


Energy, together with transport, is some of the factors that contribute to the high cost of doing business in the region. The region depends on the unreliable hydropower. This makes it vulnerable to shortages of electricity especially during drought. To ensure continuity the region relies on expensive Thermal power to keep the economy running. The result is expensive products and stagnant manufacturing units.


Economics theory teaches that, low cost of production attracts investment into a location. East Africa is set to cut the cost of energy and transport, given the amount of investment into both. Investment in oil and gas exploration is bearing results while infrastructure development is growing apace in the region.


In next five to ten years, say experts, the energy mix is expected to be fully operational generating both huge revenues and cheap power. Both Geothermal and Wind power cost an estimated US$0.07 per Kilowatt hour.
Experts say that the region has all the ingredients of manufacturing hub. These include; cheap and reliable energy, well -educated populations, a pool of skilled man power and a diversified economy including a vibrant manufacturing sector.


Given that all these factors are in place, say experts, the region will witness increased activity in the manufacturing as local manufacturers expand their capacity to meet the demand s of a prosperous population. Foreign manufacturers are also expected to come into the region in order to cut coats and also to penetrate the African Market from east Africa.


Apart from cheap power and smooth roads, the region is planning to create one Free Ttrade Area boasting of a population of more than 500 million people by July 2013.This is a US$1n trillion economy and growing. This it will achieve by marrying all three trading blocs into one. The three are; East African Common Market, COMESA bloc and SADC bloc.

YOU ARE WELCOME

[SE9]

Excellent! This is the type of news story I love to read.

The possibilities are endless Kenya

[èđđeůx]

Given the power developments, planned rail/road construction, and so on it's no wonder EAC (well at least Kenya/TZ) +Ethiopia have huge manufacturing potential.

[Malaika254]

This puts a smile on my face.

[mwathani]

thanks all for smiling. You made my day.

[KaiserSoze]

This dream can only become a reality if the member states can remove their own stringent trading & land laws and embrace the greater community trading bloc as one. It's the same stumbling bump that killed the EAC in the first place. There's an old saying; "If one doesn't learn from their past mistakes, they are bound to repeat it again"

[desert burner]

Local vehicle assemblers must have released a collective sigh of relief after major auto dealers announced plans to assemble more models in the country.

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Since imports of parts used in vehicle assembly are exempted from the 25 per cent import duty levied on fully built vehicles in Kenya, the local assemblers are now able to produce cheaper vehicles and also compete favourably with other car firms.

The new development will see Tata from India and Japan’s Hino assemble their bus and truck models at the Associated Vehicle Assemblers plant in Mombasa while Hyundai from South Korea and Eicher will assemble their buses and trucks at the Kenya Vehicle Manufacturers plant in Thika.

We welcome the initiative as it will result in the creation of more jobs in the vehicle assembly market, which has been facing stiff competition from cheap second-hand imports that have flooded the country.

The new development will also help the government in achieving its job creation targets.

Customers will also be able to buy brand new vehicles with assured quality.

According to some of the assemblers, their plants have been running at a lower capacity, thus the reversal of fortunes will result in a complete turnaround of their respective plants.

For example, the Associated Vehicle Assemblers currently produces 2,500 units compared to 10,000 units in 1985.

The situation changed following the liberalisation of the automobile market in the 1990s, which led to the wave of cheaper second-hand vehicles entering the country.

A total of 6,049 vehicles were assembled in Kenya in 2011 compared to 5,721 units in 2010. However, this was a mere 10.1 per cent of the 59,600 vehicles that were registered in the country last year.





The government should now ensure that as the number of vehicles in the country increases, the infrastructure is upgraded across the country.



http://www.businessdailyafrica.com/O...5/-/index.html

[Adm.Adama]

Finally we can have those second hand clunkers off the road.. And we can finally see some old and new car brands emerging(Nyayo car part 2/ and mobius motors entering the east african market)

[SE9]

Fight for clients in soft drinks market to hot up as Pepsi launches Sh2.6bn plant
Daily Nation
18 February 2013

Global soft drinks giant PepsiCo on Monday commissioned its Sh2.6 billion manufacturing plant in Nairobi setting the stage for cutthroat competition in the local market.

With a production capacity of 600 bottles per minute, the plant, to be run by PepsiCo’s agent, Seven-Up Bottling Company (SBC) Kenya, is expected to cut the company’s operating costs given that it has been relying on imports to supply the local market.

Located at Ruaraka, Nairobi the new plant will produce all the company’s brands already retailing in the Kenyan market —Pepsi-Cola, Mirinda, 7-Up, Evervess and Mountain Dew.

PepsiCo returned to Kenya in 2010, more than 30 years after its exit in the 1970s, opening a fresh battle front for the American soft drinks heavyweight, Coca-Cola, which has dominated the local market for decades.

Take our fair share

“We do understand the competitive nature of the market, the way our competitors are entrenched in this market. But we are also firm believers that with the right steps, we will soon take our fair share of the market,” said SBC’s chairman, Mr Faysal El-Khalil said at the ceremony.

Adopting a low pricing strategy, the company is already taking the fight for market share a notch higher with the introduction of a new 350ml soda bottle set to retail at Sh23, the same price as Coca-Cola’s 300ml bottle.

Last month, the company launched the search for distributors to push its supply of products in Nairobi, Nakuru, Naivasha and Machakos markets and has been spending heavily in marketing and advertising.

SBC has an eight-decade history of distributing PepsiCo products across the globe.

In Africa, the company has operated in Nigeria for 52 years and eleven years in neighbouring Tanzania. SBC also ventured into Ghana recently.

According to Mr El-Khalil, experience and support from these other African units will bolster the nascent operations in Nairobi.

In addition to Coca-Cola, other beverage manufactures which PepsiCo will have to contend with include the East African Breweries Limited (EABL) with its Alvaro brand.

SABMiller is also contemplating entering into the juice market after acquiring Crown Foods, which bottles Keriget Water.

Growing middle-class

Coca-Cola has enjoyed minimal competition since PepsiCo bowed out of the Kenyan market, with attempts by new entrants such as Softa failing to deliver significant impact on the market share.

PepsiCo’s is following in a new wave that has seen multinational companies make huge investments in the region, attracted by a growing middle-class with enough disposable cash to spend on luxury products.

“We are appropriately positioned to leverage the future potential of Kenya as a booming economy and look forward to being closely associated with the country’ prosperity,” El-Khalil said.

He said that the plant was the first phase of the company’s planned investments into the country and it intends to upscale its capacity going forward. With a local production, SBC will edge out parallel importers of PepsiCo products which it says have been eating into its revenue.

[SE9]

Opening of the Pepsi plant: