This archive report was first published on 6 July 2019.
On June 4, 2019, Industrialisation CS Peter Munya (center) met with Energy PS Peter Njoroge (left) and Standard Group CEO Orlando Lyomu (right) during the Transform Kenya forum on manufacturing in Kenya at Daystar University Valley Road.
The Kenyan government has ambitious plans to transform the country into a regional manufacturing hub, making local products competitive with imports under President Uhuru Kenyatta's Big Four Agenda. However, the sector faces numerous challenges, including the exit of some firms from Kenya and a decline in the sector's contribution to the economy to 7.7% in 2019 from 10% in 2014.
President Uhuru Kenyatta has stated that his administration is undertaking various measures to support the industrial sector and attract more firms to set up production facilities in Kenya. This would enable the industry to produce competitively priced products that meet demand not only for the Kenyan market but also the region.
Kenya is already a key exporter of finished products to other East African countries and aims to grow the market to include nations outside the East African Community. The African Continental Free Trade Area (AfCFTA) agreement, ratified by 24 African countries, is expected to be launched in July, opening up trade on the continent.
President Uhuru Kenyatta has expressed his desire to deepen relations with markets such as North America, Europe, and China, citing opportunities under the African Growth and Opportunity Act (Agoa) and the European Partnership Agreements (EPAs). He also mentioned the potential for exporting products such as avocados and flowers to China.
Under the Big Four Agenda, manufacturing is expected to increase its contribution to the economy to 15% by 2022.
