Investment in manufacturing to drive industrialisation, Industry PS urges

Investments, Trade and Industry CS Salim Mvurya (right) and Industrialisation PS Juma Mukhwana (left) with Japanese Ambassador to Kenya Okaniwa Ken (centre) addressing the media after their meeting at the NSSF building, Nairobi on August 28, ,2024 on the Dongo Kundu Project [Boniface Okendo, Standard]

Industry Principal Secretary Dr. Juma Mukhwana has called on Kenyans to invest in the country's manufacturing sector, saying it has potential to drive industrialisation and economic prosperity.

Dr. Mukhwana expressed concern that manufacturing is often overlooked by majority of Kenyans, posing a challenge to country's industrial future.

"As a Ministry, we encourage Kenyans to invest in this lucrative sector through the use of common manufacturing facilities being set up by the government at County Aggregation and Industrial Parks (CAIPs)," Dr. Mukhwana said.

He reiterated that such investments would reduce Kenya's reliance on imports, create jobs, and foster prosperity.

"While Africa takes up 17 percent of the world's population, Africa's share of manufactured products is only 3 percent. As compared to Europe, which takes up only 9 percent of the World population, manufacturing 25 percent, Africa is punching below its weight," said Dr. Mukhwana.

Speaking in Nairobi, the PS acknowledged the high costs of power and land for industrial development, an unsustainable tax regime, a lack of ready-made industrial spaces, and an uncoordinated supply of raw materials due to small-scale agriculture as challenges hindering the sector's progress.

"Over the last two years, the Ministry has been working with many stakeholders both within Kenya and the region to resolve these issues and create a spark in our industrialization," he added.

He said that to lower manufacturing costs, the government has initiated programmes to build industrial spaces on public land, established an industrial fund, and promoted the locally made goods.

Dr. Mukhwana highlighted the establishment of new special economic zones in areas such as Dongo Kundu, Naivasha, Thika, and Eldoret as part of efforts to brand Kenya as a manufacturing hub for Africa and the world.

"We are also promoting sustainable and fair linkages between raw material producers (farmers) and industry and developing policies, strategies, and regulations to support manufacturing through CAIPs where the country is introducing low-cost manufacturing (on government land) in the counties and also bringing into the sector many small scale manufacturers," he stated.

The PS said the government is also promoting sustainable linkages between raw material producers and industry, developing policies to support manufacturing through CAIPs, and encouraging small-scale manufacturers to enter the sector.

"This, coupled with entry into the Kenyan manufacturing space by a large number of individuals, both citizens and foreigners, is slowly tilting the country to become a manufacturing hub for Africa and possibly for the world," added Dr. Mukhwana.

He reiterated that the first-ever industrialisation conference hosted in the country last year at the University of Nairobi discussed and proposed strategies to grow the manufacturing sector.

The conference revealed that Kenya's manufacturing sector is making strides in exporting to the East African Community (EAC) and the Southern African Development Community (SADC).

The PS noted that the country has also finalised an Economic Partnership Agreement (EPA) with the European Union, allowing duty-free access to 27 EU countries, and is close to completing a strategic trade agreement with the USA, alongside the extension of the African Growth and Opportunity Act (AGOA).

"This, coupled with the entry of a large number of individuals, both citizens and foreigners, into the Kenyan manufacturing space, is slowly tilting the country to become a manufacturing hub for Africa and possibly for the world," Dr. Mukhwana stated.