Pension

NDC to Secure Sh1.6 Billion From Pension Fund

By Rosemary Mirondo

The National Development Corporation (NDC) is in a process of securing a Sh1.6 billion loan from a pension fund to capitalise its machines factory.

The Kilimanjaro Machine Tools Ltd (KMT) resumed operations last year but with limited production, especially the carpentry and milling machines.

The factory, which used to manufacture metal-cutting and wood-working machines, stopped for nearly 10 years.

NDC communication manager Abel Ngapemba told The Citizen the process was being finalised to secure the loan for the Moshi-based plant to operate at its full capacity. However he declined to name the pension fund on grounds that it was too early to do so.

According to him, borrowers are required to have collateral. Moreover, since NDC is a government institution it is required to have an approval from the Ministry of Industry, Trade and Investment.

He noted that NDC also need approval from the Treasury Registrar.

Reports say NDC injected Sh450 million into the plant. The money was spent on buying iron smelting machines that enabled KMT to start minor operations.

Mr Ngapemba said efforts were underway to ensure the factory becomes one of the major industries manufacture spare parts and machinery in the region.

The Citizen

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