Kenya targets 50 per cent local manufacturing to cut imports

By Aron Kinyamasyo and Emmanuel Mwendwa (KNA) 

Kenya is targeting to increase the share of locally manufactured goods from the current 30 per cent to 50 per cent as part of efforts to reduce import dependence, create jobs and accelerate value addition.

Industry Principal Secretary Dr Juma Mukhwana said Kenya currently imports nearly 70 per cent of the goods it consumes, presenting a significant opportunity to expand domestic production and stimulate employment.

Speaking during a media briefing in Nairobi ahead of the Kenya Industrialisation Summit and Changamka Shopping Festival scheduled for November, Dr Mukhwana said manufacturing remains central to the country's economic transformation agenda.

“We want to have a Kenya where we are manufacturing 50 per cent of all the items that we need,” he said.

The PS noted that Kenya must move beyond exporting raw agricultural products and minerals and focus on processing them into higher-value products for both local and international markets.

He identified tea, coffee, avocados and macadamia nuts as key products with significant potential for value addition through local processing, saying this would create jobs and strengthen the country's export capacity.

Dr Mukhwana said the government is promoting County Aggregation and Industrial Parks (CAIPs) to decentralise manufacturing and spur industrial growth beyond Nairobi and its neighbouring counties.

He revealed that 34 county industrial park projects have been initiated, with 15 already completed while the rest are at various stages of implementation.

The PS urged county governments to allocate land for industrial development and prioritise processing locally available raw materials, stressing that successful industrialisation requires close collaboration between the national and county governments.

He also highlighted opportunities presented by Kenya's regional and international trade agreements, noting that increased local manufacturing would enable businesses to tap into larger export markets.

In addition, the government plans to establish more industrial parks across the country to support production, value addition and exports, he said.

Kenya Association of Manufacturers (KAM) Chairperson Hitesh Mediratta said rising demand for locally manufactured goods would encourage companies to expand production, invest in innovation and develop new products.

He noted that the Changamka Shopping Festival would provide a platform for manufacturers to showcase Kenyan-made products and connect with consumers, retailers, distributors and potential business partners.

More than 200 exhibitors are expected to participate in the event.

Mediratta called on consumers, government agencies and institutions to support locally manufactured products, saying stronger domestic demand would help drive industrial growth.

He noted that manufacturers require affordable financing, reliable and competitively priced energy, efficient transport and logistics systems, modern infrastructure and predictable tax and regulatory policies to remain competitive.

The KAM chairperson also called for stronger implementation of trade agreements, including the African Continental Free Trade Area (AfCFTA), the Kenya-European Union Economic Partnership Agreement and the African Growth and Opportunity Act (AGOA), to help manufacturers access wider markets.

He emphasised that promoting local products must be accompanied by quality, affordability and innovation to build consumer confidence and enable Kenyan goods to compete effectively with imports.

United Nations Industrial Development Organization (UNIDO) Deputy Representative and Partnerships Officer Lynette Luvai said industrialisation requires adequate, innovative and accessible financing, particularly for micro, small and medium-sized enterprises as well as women- and youth-led businesses.

She noted that industrial development is critical to creating decent jobs, increasing value addition and building resilient economies capable of competing in regional and global markets.

Luvai reaffirmed UNIDO's commitment to working with the Government, KAM and other partners to promote competitive, inclusive and sustainable industrial development.

She added that the summit and shopping festival would bring together manufacturers, investors, universities, technical and vocational education institutions and other stakeholders to discuss industrial policy, financing, innovation and market access.

Dr Mukhwana said the summit is expected to generate policy recommendations aimed at strengthening the competitiveness of Kenyan products, improving collaboration between government, industry and academia, attracting investment into manufacturing and increasing awareness of locally produced goods.

He urged Kenyans to view manufacturing as an investment opportunity, noting that enterprises can start small and scale up as they develop products and access new markets.