This archive report was first published on 5 July 2019.
Published on July 5, 2019, a survey conducted by SYSPRO and Strathmore Business School has shed light on the challenges faced by Kenyan manufacturers. The study found that high production costs and the lack of advanced technologies are the primary obstacles to growth in the sector.
The survey, which interviewed 100 companies across 12 sectors, revealed that 83% of manufacturers are semi-automated, while only 11% are fully automated. Many businesses use outdated production units due to the high cost of spare parts, the lack of locally made spare parts, and the existence of counterfeit products.
According to Pravir Rai, SYSPRO's Head of Channel, the company offers affordable technology to manufacturers. "Keeping IT costs low is very important for businesses, particularly SMEs. With SYSPRO's ERP solution, we offer choice and flexibility," he said.
The manufacturing industry is a key priority area for the Kenyan government, which aims to increase productivity and enhance the competitiveness of products in local and international markets. The sector added 9.2% to Kenya's economy and employed 12% of the formal sector workers in 2016.
