Numerical Machining Complex (NMC), a state-owned machine-tool manufacturer, is planning to build a plant that will produce steel from scrap metal.
In a statement e-mailed Monday by his office, President Mwai Kibaki said the plant will be constructed at Athi River, about 25 km southwest of Nairobi.
NMC, which manufactures spare parts for cars and for industrial use at its complex located at the Kenya Railways headquarters in Nairobi, will spend about Sh5 billion to finance its expansion.
According to the President’s statement the firm may generate annual revenue of Sh30 billion and create thousands of jobs if it increases its capacity sevenfold to 21 metric tonnes per hour.
Manufacturing is among the six industries targeted by the government under a program that seeks to achieve an average annual economic growth rate of 10% over the next twenty years to help Kenya reach middle-income status by 2030.
Metal and steel products are Kenya’s largest manufactured goods exported within the Common Markets for Eastern and Southern Africa (Comesa).
NMC is the only factory of its kind in the region, outside Egypt and South Africa.