Govt to offer concessions, cheaper loans in industrialisation acceleration bid

Audio By Vocalize

The government is considering concessions to accelerate the local manufacturing industry.

Speaking during the annual Kenya Association of Manufacturers (KAM) members' exhibition event dubbed the Changamka Kenya Shopping Festival, President William Ruto said that the government intends to float concession loans to enable those interested in manufacturing to join without financing hurdles.

Ruto said that the ultimate goal is to have manufacturers access loans with single-digit interest rates, adding that his government is in the final stages of establishing an Industrialisation Fund.

He also urged Kenyans to prioritise local products as a way of accelerating the manufacturing industry growth, which he said was slow.

"When we buy Kenya, we build Kenya," said Ruto.

Among the stands that the President visited was Kifaru Steel at the 2026.  

The Company highlights over 1,000 jobs, import substitution, export growth and supports hundreds of youth and women entrepreneurs.

He engaged with the company’s team on manufacturing growth, employment creation and export opportunities.

Kifaru Steel presented its growth as a testament to the potential of Kenya’s manufacturing sector under the Ruto administration. The company reported that it is now Africa’s second-largest manufacturer of galvanised iron (GI) wire.

When the project began, it was the first of its kind in East Africa, established as a 100 per cent import-substitution factory to manufacture locally products that had previously been imported.

Today, exports account for 40 per cent of Kifaru Steel’s market, marking its progression from replacing imports to supplying international markets.

The company is targeting a production capacity of 6,500 metric tonnes per month by 2027—an expansion it says would position Kifaru Steel as Africa’s largest GI wire manufacturer.

Kifaru Steel highlighted how government support for the steel industry is helping strengthen local manufacturing value chains. The company reports that its activities support an ecosystem of more than 300 small and medium-sized enterprises manufacturing fencing products, extending opportunities beyond the factory floor into cottage industries and local businesses.

At the exhibition, Kifaru Steel committed to donating five chain-link manufacturing machines, free of charge, to young entrepreneurs under the guidance of the ministry responsible for industry.

The pledge reinforces the company’s commitment to equipping young Kenyans with productive machinery to establish businesses, create employment and participate in the country’s growing fencing-products value chain.

The event held at Kenyatta International Convention Centre (KICC)   has attracted more than 400 exhibitors and will run for the next five days.

The annual exhibition is meant to showcase locally produced goods and is meant to link manufacturers directly to the market.

KAM CEO Tobias Alando said that the exhibition was a testament that the industry was competitive enough even in the global market. He was of the view that access to financing, a manufacturing-friendly regulatory environment and proper infrastructure will accelerate Kenya’s industrialisation.

“The products being showcased here today demonstrate what Kenyan manufacturers are producing and the markets they are serving—from our own households to the United States and the European Union. Supporting Kenyan businesses also supports the workers, farmers, suppliers, and transporters connected to manufacturing,” said Alando.

Changamka comes against the backdrop of the 4th Industrialisation Summit, set for November 4, 2026, and dubbed “Driving Industrial Growth through Investment, Manufacturing, Trade, Innovation and Sustainable Financing.”