Manufacturers Call For Export-Led Industrialization For Growth

Manufacturers have called on the government to prioritize export-led industrialization for sustained economic growth In Kenya.

This was during the rollout of the annual Kenya Association of Manufacturers (KAM) Manufacturing Priority Agenda (MPA), themed, “Manufacturing sector recovery and sustained growth for Kenya’s shared prosperity.”

Speaking during the launch, Cabinet Secretary, Ministry of Industrialization, Trade and Enterprise Development Ms. Betty Maina noted that the government has been continuously engaging the business community to improve competitiveness in the sector.

“Following engagements with businesses over the years, we have made tremendous strides in enhancing our trade and industrialization capacity as a nation. One of the key initiatives has been preferential procurement for locally manufactured goods by the government to increase the consumption of Kenyan goods and services.

Furthermore, we have increased our focus on standards development to enable Kenya to take advantage of emerging market opportunities presented by various trade agreements.”  Betty said”.

Principal Secretary, Ministry of East African Community and also the Regional Integration, Dr. Kevit Desai on the other hand highlighted the need for collaboration, to transform the economy.

“It is essential for all relevant stakeholders to work jointly to transform and propel growth within the various sectors of the economy. The Government shall remain focused on creating policies and legislations that support the sustained growth of the manufacturing sector.”  He Stated.

IMF Representative, Mr. Tobias Rasmussen however, noted that whilst Kenya has made significant strides to improve the trade environment, the country’s volume of exports remains low.

“Kenya’s export performance has been relatively stagnant, particularly for manufactured goods, even before the pandemic. Kenyan products have not been able to compete favorably in the regional and global markets. Reversing this trend calls for export dynamism by Kenyan manufacturers.

This entails enhancing the adoption of technologies to enhance the quality of Kenyan products, increasing value addition and product sophistication.” He spoke.

According to KAM Chairman, Mr. Mucai Kunyiha, competitiveness is the only foundation on which the country can build a sustainable manufacturing industry that delivers value to consumers.

Competitiveness enhances a nation’s capacity to create productive jobs, decent wages, and consequently, a dependable social support system for its population.

On that note, the government has been urged to address the bottlenecks highlighted in the MPA, including the high cost of production, policy instability and unpredictability, the arduous tax regime, transport and logistics, illicit trade, regulatory overreach, and market access, among others.

The MPA which is an annual publication that guides the Association’s advocacy efforts with Government and its agencies is guided by 5 pillars in 2022, to support the recovery of the manufacturing sector from the devastating effect of COVID-19. These include,

1. Enhancing competitiveness and level playing field for local manufacturers
2. Enhancing market access for locally manufactured goods both in local and export markets
3. Promoting pro-industry policy and institutional framework
4. Promoting SME Development
5. Enhancing industrial sustainability and resilience