NAIROBI: The Industrialisation ministry yesterday unveiled an ambitious blueprint that seeks to boost the manufacturing sector with the aim of adding Sh300 billion to the gross domestic product (GDP).
The 10-year plan — Kenya’s Industrial Transformation Programme — looks beyond import-substitution and export-led policy regime to develop the industries and lift the country’s ambitions as Africa’s next industrial power.
Anchored on a five-point strategy, prioritising leveraging Kenya’s comparative advantages, the plan aims at growing the manufacturing sector to levels above 15 per cent of GDP from the 11 per cent seen in the past decade.
Industrialisation and Enterprise Development Cabinet secretary Adan Mohamed said Kenya has identified 10 opportunities within the key strategies that will increase manufacturing sector jobs by 435,000 in the next five years and add Sh200-300 billion to the GDP.
“As an emerging economy, moving from an agriculture-based, low-income economy to an industrial, middle-income economy, it is paramount that the manufacturing share to GDP increases,” he said.
He said increased exports would help Kenya deal with the fiscal and monetary challenges it has faced in the past 10 years by reducing the current reliance on domestic consumption as a major driver of growth.
“To boost production and exports, Kenya will work to ease regulations on the sale of the exports while looking to attract a 50 to 100 per cent price premium by marketing tea and coffee as a ‘Made in Kenya’ brand internationally,” said Mohamed.
Manufacturers have frequently cited high energy costs, insecurity, expensive trade logistics and difficulty in accessing external markets as the top challenges that restrict the sector’s growth. The programme will also support small and mid-sized enterprises, which the CS referred to as the biggest players in driving growth.
“We also plan to offer incentives for local value addition for multinational companies to consider creating opportunities for SMEs by investing in group packaging,” said Mohamed, adding that the efforts are expected to attract Sh20-24 billion in value addition and 10,000 jobs.
Mohamed said the blueprint commits to build capacity of local firms to profit from Kenya’s infrastructure and investments boom. Infrastructure, residential and commercial construction as well as a oil, gas and mining services have witnessed a massive boom with local firms missing out due to lack of scale and expertise.
