Uganda, Tanzania order vessels from Kenyan military firm

What you need to know:

• Kenya’s government spokesperson Cyrus Oguna said Kenya is keen on utilising the shipyard across the region given that it’s the only facility currently around.
• The firm is seeking to leverage the 40 percent tax waiver on shipbuilding equipment by Treasury to increase its operations in the region.

Kenya Shipyard Limited (KSL) has received six orders from Tanzania and Uganda for the construction of ships, raising the business prospects of the newly formed entity.

The firm’s deputy director, Peter Muthungu, added that it had another 11 orders from local firms for the construction of the ships.

“In total, we have got 17 orders from different companies that want us to construct ships for them,” said Col Muthungu.

Col Mathungu, however, did not give the cost of making one ship, pointing out that the process needs to undergo three evaluation stages before the final figure is arrived at.

Kenya’s government spokesperson Cyrus Oguna said Kenya is keen on utilising the shipyard across the region given that it’s the only facility currently around.

“This shipyard will play a significant role not only in Kenya but also in handling ship-related issues across our neighbouring countries,” said Rtd Col Oguna.

The firm is seeking to leverage the 40 percent tax waiver on shipbuilding equipment by Treasury to increase its operations in the region.

KSL says its partnership with Damen Construction Company, which has shipyards in South Africa and Egypt and 39 shipyards across the globe, will enhance Kenya’s quest to be a regional ship construction hub in its long term strategy.