Government puts in funding for completion of stalled projects

Trade Cabinet Secretary Peter Munya inspects a stalled project at Kenya Industrial Training Institute. [Harun Wathari, Standard]

Stalled projects at the Kenya Industrial Training Institute (Kiti) will be completed within the next six months, Industry, Trade and Cooperatives Cabinet Secretary Peter Munya has said.

Some of the projects at Kiti, the only institution offering training under his ministry, had stalled for more than 30 years.

Mr Munya said the Government has allocated funds that would see the completion of the projects estimated to cost more than Sh360 million. “The challenge has been underfunding of the projects,” he said.

 Amount set aside

Munya did not, however, disclose the amount set aside by the Government, but said the contractor was already on site.

Last year, members of the National Assembly Committee on Trade, Industry and Co-operatives established that Kiti required Sh360 million to complete stalled projects and had another shortfall of Sh100 million for new ones.

Peris Adema, the institution’s director, said the main challenge was funding for projects.

“The institute, being run under another department, has been a challenge and most of the processes have been slow. Plans are underway to have the parastatal run on its own,” said Munya.

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He added that there was need to put in resources for technical institutions to help close the skills gap in the industrial sector.

The CS said the Government had put in place progressive policies for incentives towards growth of industries whose major challenge had been the cost of doing business.

Among the incentives, he said, was lowering of VAT, a move he said would spur growth.

He said the ministry was also negotiating with relevant organisations to lower power tariffs by 30 per cent in a move set to bring down the cost of operations.

Favourable tax

“Most start-up industries often collapse as a result of the high cost of doing business,” said Munya.

Among other measures to ensure growth of local industries, he said, the Government had increased import declaration levies and reduced those of exports to support local companies.

Start-ups, he said, had also been given favourable tax to help lower the cost of operation as well as see survival of most of them, where they will be able to access affordable credit through Small and Medium Enterprise Fund.

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Trade Cabinet Secretary Peter Munya