Kenya Power’s choice of East African Cables, a prominent local manufacturer of electrical cables and conductors, is a pivotal strategy in bolstering the reliability of electrical power distribution in Kenya.
According to Mr. Paul Muigai, the Chief Executive Officer of East African Cables, Kenya Power has steadily expanded its efforts to provide procurement opportunities for local manufacturers. This aligns with the Government’s Bottom-Up Economic Transformation Agenda (BeTA), which seeks to empower local businesses.
Mr. Muigai, while confirming the dispatch of the initial consignment worth Kshs 232 million in electrical cables and conductors to Kenya Power, emphasized the positive ripple effect that sustained orders from local manufacturers will have on the national economy.
“East African Cables celebrates Kenya Power’s unwavering support for local manufacturers as we send off the first batch. This support significantly contributes to our national industrialization and economic transformation efforts,” stated Muigai.
East African Cables is on track to fulfill Kenya Power’s order, which spans multiple batches throughout the year. Mr. Muigai noted, “At East African Cables, we specialize in manufacturing high-quality cables and conductors for power transmission across various voltage ranges. The order placed by Kenya Power for medium voltage cables will be delivered through a flexible supply framework.”
In its recently released half-year results, East African Cables Kenya Plc maintained an impressive growth trajectory. This was largely driven by increasing demand in the retail and wholesale sectors, particularly for building and construction projects. The company reported a remarkable 24% growth in Gross Profit, attributable to rising sales volumes in the retail sector, continuous efforts in market development and communication, and enhanced operational efficiency.
Despite facing macroeconomic challenges, such as the accelerated depreciation of the Kenyan Shilling against the US Dollar and constrained working capital, East African Cables successfully upheld a stringent cost containment strategy. This was achieved by leveraging continuous improvement practices deeply embedded in the company’s operations.