Machine Complex to set up steel mill in Athi River, eyes share of railway billions

Cabinet Secretary for Industrialisation and Enterprise Development Adan Mohammed. The ministry expects NMC to play a key role in manufacturing metal-based engineering products. [PHOTO: FILE/STANDARD]

By MACHARIA KAMAU

NAIROBI, KENYA: The Numerical Machining Complex (NMC) is set to become a factor in Kenya’s industrialisation after decades of little or no production. The firm known for the failed Nyayo Car project plans to set up a steel mill on its land in Athi River.

The Ministry of Industrialisation and Enterprise Development is propping up NMC and it expects it to be critical in the manufacture of metal-based engineering products in the coming years.

Other than operating a steel mill, there have been proposals to enhance its capacity to supply spare parts for the planned Mombasa-Nairobi Standard Gauge Railway.

NMC Tuesday started the process of recruiting a consultant that will undertake a feasibility study on the commercial and technical viability of the steel mill.

“The ministry through NMC intends to support the establishment of an integrated steel mill in Kenya,” said NMC in the request for expression of interest Tuesday.

“Iron and steel, which is the foundation of the manufacturing sector, is critical in the development of the country and more so when the country is implementing Vision 2030 projects, most of which are infrastructural in nature.”

The planned steel mill will be constructed on a 1,200-acre piece of land in Athi River owned by NMC. 

STANDARD GAUGE RAILWAY

In addition to the steel mill, NMC is also expected to be among the firms that will play a significant role in sustaining the operations of the standard gauge railway.

The institution would be among the local companies manufacturing numerous parts.

American infrastructure giant General Electric (GE) recently made a proposal to the Transport Ministry to help transform NMC into a mid-sized manufacturer of railway consumables including some of the spare parts to be used on the SGR railway and the locomotives.

The company is eyeing a piece of the new railway and as per the proposal, it would supply more than 100 locomotives. NMC, set up in 1994 was expected to be an anchor in the country’s manufacturing but is today seen as a gross underperformer.

 Its foremost product was supposed to be the Nyayo Pioneer car, which was to start the process of transforming the country into an automotive manufacturer, but it barely got off the ground. The NMC says that it currently produces industrial and automotive parts.

WEED HARVESTER

It also says it has designed and developed a hyacinth weed harvester, lathe machines, small hydroelectric power plants and rice harvesters. There have been numerous reports in the past that it has failed to deliver on orders that it has gotten, mostly from ministries as well as commercial customers.

The firm had been identified as a major agency under the industrial pillar of Kenya’s economic blueprint, Vision 2030. But today, this hope seems to be fading as concerns rise about the company’s future.