This archive report was first published on 15 July 2019.
Kenya's manufacturing sector has set ambitious targets to contribute 15 percent to the economy by 2022, but currently lags behind, contributing less than 10 percent of the GDP.
According to a recent survey conducted by SYSPRO, a global technology company, and Strathmore Business School, the sector faces significant challenges. The study found that most companies do not operate optimally, with only 46 percent running a full 8 hours a day, and 47 percent operating between 6-8 hours a day.
The survey also revealed that outdated technology is a major issue, with 83 percent of manufacturers being semi-automated, and only 11 percent fully automated. This is despite the fact that many businesses face diverse challenges such as high energy costs, lack of access to funds, and a shortage of skilled workers.
Speaking at the launch of the report, SYSPRO's Head of Channel Pravir Rai emphasized the need to keep technology costs down for manufacturers. “Keeping IT costs low is very important for businesses particularly SMEs,” he said. “With SYSPRO’s ERP solution, we offer choice and flexibility,” he added.
