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Challenges to Manufacturing Startups
wairegi
#1 Posted : Monday, October 29, 2012 9:21:18 PM
Rank: Member


Joined: 6/4/2007
Posts: 215
Why Kenya will not achieve the Vision 2030 will be by largely because of the bureaucracy and inept performance by the bodies that are supposed to be the biggest pillars. Here are my experiences in starting a small manufacturing plant

1. Took me 3 weeks to incorporate a company

2. For Kenya Power to upgrade my connection to three phase they took 3 months and the transformer is a 100 meters from my place of residence.

On submitting the application they send you a quotation depending on the KVA applied for. They will send somebody for a site survey, then after two weeks another person for the wayleave.; a designer is then sent to do a design. After the designer a contractor is sent. A kplc supervisor comes to inspect the holes for the poles, after the go ahead then contractor erects the poles and connects the plant to the supply. Then the supervision comes again before sending the meter people. At different stages they will be asking for different documents, for title deed for prove of ownership of plot, Photocopy of IDs, PIN certificates e.t.c. Meanwhile you loose time and bills need to be paid and you investment still lie waiting.

3. KEBs
Since you need to be in the good side of the Law on comply with the requirements you apply for the standard mark. On submitting the application of the mark and paying the required amounts you are advised to wait as the officers will come and draw the samples themselves.

After, four weeks without show you call them and they promise to visit you and draw the samples. Then you are supposed to wait for three weeks for analysis to be done.

All this time you are paying workers and have idle investment and if you have been financed the financiers are demanding for the returns. It becomes very expensive and for faint hearted they can easily give up. No wonder many Kenyans rush to buy land other other concerns that will create employment and have left industries to Indians.

As other huge company enjoy tax holidays on machinery imported for production a small timer can't get this facility and he has to apply to the treasury for the exemption by the minister.


Please share you experiences, this might help a brother or a sister
Kaka M
#2 Posted : Tuesday, October 30, 2012 2:18:58 PM
Rank: Member


Joined: 4/18/2011
Posts: 459
Pole sana for that experience, and thanx for the info.
Meanwhile I hope you are now up n rolling. In future it might help if you befriend the first KPLC etc officer you deal with who can then be your point man and assist you with dealing with his colleagues.
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