State in ambitious 10-year plan to create more jobs in manufacturing

The Government has launched an ambitious 10-year plan to add nearly half a million jobs in the manufacturing sector by 2020.

Through a new initiative launched by Industrialisation Cabinet Secretary Adan Mohamed, it has identified 10 pillars to increase manufacturing sector jobs to 435,000 additional jobs in the next 5 years, more than double the current numbers.

Adan Mohamed, Cabinet Secretary Industrialisation during a visit at Kariokor leather market. Leather processing is one of the key sectors targeted by the blueprint. (PHOTO: FILE/STANDARD)

The blueprint will also see creation of an industrial development fund, industrial parks along infrastructure corridors and support agro-processing, textiles, mining among other sectors.

“As an emerging economy, moving from agriculture based, low income economy to an industrial, middle income economy is paramount if we are to increase manufacturing share of GDP,” explained Mohamed.

He was unveiling a government blueprint that would guide revival of the industrial and manufacturing sector in Kenya. His ministry is establishing an industrial development fund that would provide financial support for businesses and small industries.

Among the pillars identified include agro-processing and the textile industry which is labour intensive.

“To boost production and exports, Kenya will work to ease regulations on the sale of the exports, while looking to attract a 50 to 100 per cent price premium by marketing tea and coffee as a ‘Made in Kenya’ brand internationally,” Mohammed said yesterday.

Shoes were 12 times more expensive than the raw hides they are made from, but which are mostly exported unprocessed, according to the Industrialisation ministry.

The country’s leather sector is estimated to be worth Sh10 billion but could be more than ten times bigger through manufacturing shoes locally.

Kenya would also slash the exports of unprocessed tea and coffee, in the development plan, significantly adding value to the products locally before they are sold in the international markets.

About Sh1.5 trillion in new investments are expected in manufacturing plants, which the State hopes to tap from global investors.

Foreign investors

Mohamed said the State hopes to attract investors to develop three to five large integrated value chain ‘Agropolis’ projects with potential to create up to 60,000 jobs.

Several incentives had been lined up, including the newly enacted pieces of legislation on Special Economic Zones, that could grow the exports to the American market to Sh100 billion, under the African Growth Opportunity Act (AGOA), which was extended by 10 years.

“We will be expanding to new geographical markets in textiles and apparel growth and building an industrial park with a textile cluster in Naivasha to take advantage of natural power sources.”

Kenya Association of Manufacturers Chief Executive Phylis Wakiaga said the manufacturing sector blueprint was critical in the revival of industries.