Optimism Among Kenyan Manufacturers High
Manufacturers rely on a stable, balanced and common-sense regulatory environment to create jobs and fuel economic growth. However, the burden of unnecessarily costly and duplicative rules weighs heavily on their ability to grow and create jobs. To secure investment in the manufacturing sector, the government needs to guarantee inventors a stable policy environment, supportive taxation measures, and an investment climate that facilitates the growth of industry.
The second pillar is the securing of markets by building on the ‘Buy Kenya, Build Kenya’ initiative and export competitiveness. In Kenya, exports would enable the country to effectively deal with the fiscal and monetary challenges to reduce current reliance on domestic consumption as a major economic driver.
The 2016 World Economic Forum Report places Kenya at position 122 out of 138 countries in terms of having a competitive macro-economic environment for investment compared to position 96 out of 148 in 2015.
This is way below Tanzania, Uganda and Rwanda. Kenya is only above Burundi which was ranked 124.
On the other hand, the World Bank says the ease of Doing Business in Kenya has improved to 92 in 2016 from 113 in 2015. This has averaged 108.78 from 2008 until 2016, reaching an all-time high of 129 in 2013 and a record low of 84 in 2008.
The Kenya National Bureau of Statistics (KNBS) says the manufacturing sector has remained largely subdued and is estimated to have expanded by 3.2 per cent in the second quarter of 2016 compared to 5.1 per cent in a similar period in 2015.
Besides these conflicting statistics, Kenyan manufacturer’ are optimistic of the sector’s growth ahead of the first ever Kenya Manufacturing Summit and Expo organised by the Kenya Association of Manufacturers (KAM) in collaboration with The Ministry of Industry, Trade and Cooperatives.
“The summit is a showcase of made in Kenya. We are also inviting all procurement officers to see what is in Kenya – “Buy Kenyan Build Kenya” Initiative. We want to see linkages; we want to see subcontracting. We want people to stop trading in products and start manufacturing the products,” says Ms. Flora Mutahi, chairperson of the Kenya Association of Manufacturers (KAM) board.
The summit’s theme is, “Growth opportunities in the Kenyan manufacturing Sector,” scheduled for 16-18 November 2016.
Support local manufacturers in Kenya at the first ever Kenya Manufacturing Summit and Expo. #TopManufacturersKE pic.twitter.com/z7OS4xyEEY
— KAM (@KAM_Kenya) November 8, 2016
Vimal Shah, Chief Executive Officer Bidco Group in an exclusive interview with Soko Directory during the 4th edition of the SuperBrands award ceremony in Nairobi, he said the manufacturing sector is headed for growth.
“I believe the local manufacturing sector in Kenya will grow even further from the current 10 per cent to 15 per cent to 20 per cent as long as we believe there is a better way:
One, we are competitive, two improve the productivity per capita, productivity per output that is a big issue that companies can remove a lot wastage in the system. If you remove wastage, remove in the processes, you will become more competitive and as people become competitive, we have market access,” he says.
“From Kenya, if you manufacture in Kenya you got market access in the whole of East Africa, COMESA – starts from Egypt up to Zimbabwe- and we also have got market access in to AGOA markets in America and under the EPAs we have market access in to Europe.
What we really need now is the local manufacturing to boost up,” he adds.