How Kenya’s NMC turned scrap into profits with KPLC partnership

The Numerical Machining Complex (NMC), a little-known state corporation in Kenya, is writing a remarkable comeback story, one that began in a scrapyard. After years of financial struggle and obscurity, a strategic partnership with Kenya Power & Lighting Company (KPLC) has transformed the company’s fortunes.

In 2024, NMC reported a profit of Ksh 960,280, a milestone for a corporation that had been posting losses for over a decade. According to a report by NTV, the key to this revival is an innovative deal that allows NMC to recycle KPLC’s used transformers and scrap metal into spare parts and other industrial products. “We turn them into billets, which are later used to manufacture products for Kenya Power and other customers,” said NMC Acting Managing Director George Makatetu.

This partnership not only offers a lifeline for NMC but also helps KPLC cut down on costly imports, saving time and resources. It also addresses a critical issue—vandalism of power infrastructure. “When you consider the cost of maintenance and the loss of revenue due to vandalism, the impact is immense,” said KPLC Managing Director Joseph Siror.

A new lease of life for a forgotten giant

Established in 1984 in Nairobi’s Railways area, NMC was once seen as Kenya’s answer to the automobile industry, gaining national attention for assembling the country’s first locally made car, the ‘Nyayo Pioneer’. However, despite producing five prototypes, the ambitious project stalled. “NMC was originally a motor vehicle manufacturing company, and we developed a prototype of the Nyayo Pioneer. However, due to challenges at the time, we couldn’t proceed to mass production,” Makatetu recalled.

As dreams of mass-producing the Nyayo Pioneer faded, NMC pivoted to manufacturing industrial spare parts for sugar, cement, and agriculture sectors. But financial troubles persisted, pushing the company to the brink. The turning point came when KPLC, now NMC’s largest client, placed orders worth Sh800 million. “That brought a major change in NMC, a company that was so silent with little activity,” Siror noted.

With KPLC supplying copper and aluminum, NMC plans to expand its product line to include cables and earth rods, potentially unlocking new revenue streams. “This year, we might make better profit because there is additional engagement with used copper, aluminum, and transformers,” Makatetu said, hinting at a brighter future.

A Second Chance for the Nyayo Pioneer?

While NMC’s revival is rooted in industrial manufacturing, the dream of a homegrown car isn’t entirely dead. Makatetu suggested that a modern version of the Nyayo Pioneer could still be possible—this time with a focus on electric and hybrid technology. “Maybe not immediately, maybe medium-term to long-term,” he said.

For now, NMC’s focus remains on fulfilling KPLC’s orders and expanding its client base. With a renewed sense of purpose, the company that was once on the verge of collapse is not just surviving but showing signs of thriving. “We chose to work with NMC because of its transparency,” Siror emphasized, highlighting the trust that underpins the partnership.

Read more on Kenyan government bans import of cars over eight years old starting 2025