NAIROBI, Oct. 5 (Xinhua) -- Kenya's first transfomer-manufacturing plant, set up by a Chinese firm, opened on Wednesday.

A launch ceremony was held in the compound of the plant, which is established by the Kenyan subsidiary of Chinese company Yocean Group on the outskirts of the capital Nairobi.

Attending the ceremony, Kenya's Cabinet Secretary for Energy and Petroleum, Charles Keter, said the establishment of the factory that manufactures and assembles transformers will reduce high import bill and stimulate economic growth in Kenya.

"The opening of the first factory for manufacturing transformers in the Kenyan market is a milestone. It will end importation of electrical equipment that in some way slowed down power connection in the country," Keter said.

Kenya has been relying on transformers from abroad, mostly from India. Keter said the plant will ease procurement of transformers and other electrical appliances.

He said Chinese investment in Kenya's transport and energy sectors has accelerated the country's industrialization.

He also said the Kenyan government had created a friendly policy to attract foreign investment in the energy sector.

Guo Ce, the economic and trade counselor at the Chinese embassy in Kenya, said at the ceremony that China has been encouraging its companies to invest in the East African nation.

He said the establishment of a local transformer-manufacturing plant will rejuvenate Kenya's quest for energy security and socio-economic transformation.

"The factory will not only be providing quality products and services to its clients, but also create jobs for the youth while enhancing skills and technology transfer for local employees," Guo said.

Kenya's power utility has already awarded a three-year contract to Yocean Group to distribute transformers in the country.

Dylan Yu, CEO of Yocean Group, said his firm has the capacity to manufacture made-in-Kenya transformers of international standards.

He added Yocean will in the near future expand its footprint in the regional market.