The capital goods and spare parts industries: A case study of electric motor reconditioning and manufacture in Kenya

Abstract

In this study the electric motor rewinding sub-sector of the Kenyan industry is examined together with the possibilities of manufacturing small electric motors in Kenya.

A substantive finding is that capacity utilisation in this industry is very low, averaging 29% of the maximum possible. Some policies to elevate the utilisation of both labour and capital are suggested. However, it is noted, due to significant intersectoral linkages, a comprehensive policy aimed at raising capacity utilisation (and avoiding the creation of excess capacity) in the entire industrial sector of Kenya is required.

The manufacture of small electric motors in Kenya is shown to be feasible both technologically and economically. Manufacturing through sub-contracting to existing foundry and machine shops is argued to be preferrable to setting up a new fully fledged manufacturing plant.