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Kiambu to transform into an industrial hub despite challenges.

BY · May 11, 2015 11:05 am

Kiambu County provides an ideal destination for investors when setting up and when creating distribution channels, due to land affordability and proximity to the capital city.

The county is predominantly rural but its urban population is increasing at a high rate due to the expansion of Nairobi. It is ranked fourth in the country in terms of economic growth potential. Its location is closer to home of manufacturing factories for textile, food, beverages, cooking oils, mining and vehicle assembly.

Under Vision 2030, the manufacturing sector is expected to propel the economy growth rate by 10%, under the Economic pillar to support the country’s social development agenda through the creation of jobs, generation of foreign exchange and attracting direct foreign investment.

The sector has to be more efficiency-driven and raise productivity per unit of input to meet these goals. However, Kiambu’s industrial and manufacturing sector is challenged by poor physical infrastructure, unreliable and costly energy, insecurity, constraining standards of traditional export markets, inadequate water supply, outdated technology, high cost of labor, high poverty levels prohibiting market growth and complex licensing regime by the county and national government.

The county’s industrialization is also hampered by other factors like inefficient supply chains, exploitation by brokers, incompetent staff due to labor costs, and lack of business skills among others. The county seeks to get involved and partner with energy providers in industrial development, including generation of affordable and green power thus increasing productivity.

“My government is committed to ensuring Kiambu County will be the preferred place to grow, learn and live in Kenya. We are also committed to make it a favorable environment for doing business.” said Mr. William Kabogo, Governor Kiambu County.

Kiambu County aims at reducing the cost of setting up industries through reducing the charges and by ensuring that the process of licensing is less cumbersome. The county aims at reviving or promoting ailing industries in the short term.

According to Export Promotion Council (EPC), in 2011 Uganda was the top destination for Kenya’s merchandise, exports increasing from Kshs.52.11 billion in 2010 to Kshs.75.95 billion in 2011, a 46% increase. The other importers are Tanzania and the Democratic Republic of Congo who mainly import oil products, manufacturing products and construction materials.

Kiambu is at an advantage due to its location, immense entrepreneurship potential and fertile soils.

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