The Death Of Kenyan Manufacturing: A Sinister Plot by Government, Banks, And Politicians To Turn Kenya Into A Fully Trading Country

By Steve Biko Wafula / Published September 3, 2024 | 4:08 pm

Kenya's manufacturing sector is dying if leaders will not wake up

Kenya, a nation once poised to be the industrial hub of East Africa, now finds itself teetering on the edge of economic collapse. This decline is no accident; it is a carefully orchestrated plot by successive governments, the banking sector, and the political elite to ensure that manufacturing in Kenya remains a distant dream. The motive? To turn Kenya into nothing more than a trading post—a middleman for global powers—where the elite control the flow of goods and pocket the profits while the average Kenyan suffers.

For decades, the cost of energy in Kenya has remained prohibitively high. This is no mere consequence of market forces; it is a deliberate move to strangle the manufacturing sector at its roots. Western Kenya, a region with immense potential for industrialization, is left in the dark—literally. The few factories that exist, owned by the Rai family, are forced to generate their own power because the state has ensured that the grid remains inaccessible and unreliable. This isn’t just neglect; it’s a calculated policy dating back to Jomo Kenyatta’s government, designed to keep Western Kenya from ever rising to its industrial potential.

The tax code in Kenya is a labyrinth of punitive measures designed to crush any manufacturing dreams. While other sectors are given a free pass, manufacturers are taxed into oblivion. The complexity and burden of these taxes make it nearly impossible for new industries to survive, let alone thrive. Why would anyone invest in manufacturing when the government has stacked the deck against them?

Kenya’s economic policies are a masterclass in self-sabotage. Every policy enacted by our government is geared toward promoting imports at the expense of local production. This is not a coincidence. By exporting jobs and importing goods, the political class and their cronies in the private sector ensure that they control trade and reap the profits, all while the Kenyan worker is left with nothing.

The education system is another tool of this grand conspiracy. For decades, the government has glorified white-collar jobs and denigrated blue-collar work. The Competency-Based Curriculum (CBC) is the latest weapon in this war against manufacturing. Instead of fostering a love for agriculture, production, and industry, CBC ensures that every student who goes through it emerges with a disdain for these critical sectors. Our children are being trained to be cogs in a service industry that serves the elite while the real engines of the economy—manufacturing and production—are left to rot.

This disdain for local production is not just fostered in schools; it is a nationwide campaign. Successive governments have worked tirelessly to make sure that Kenyans prefer imported goods over locally produced ones. This is no accident. The political elite control the import trade, and they will do whatever it takes to protect their interests, even if it means destroying the very fabric of our economy.

The private sector, particularly banks, has become complicit in this conspiracy. Rather than supporting manufacturing through loans and investments, they have cozied up to the government. Why lend to a struggling manufacturer when the government is offering an 18% return on investments? The banks have made their choice, and it is not in the interest of the Kenyan people.

Without a robust manufacturing sector, Kenya is doomed. We will become a nation of traders and consumers, beholden to the whims of global powers. We will have no control over our own economy, no ability to create jobs, and no way to lift our people out of poverty. We will be at the mercy of those who control the flow of goods into our country, and our economy will be a hollow shell, devoid of real substance or stability.

A country that fails to produce is a country that fails, period. Without manufacturing, we cannot build a sustainable economy. We cannot create jobs, we cannot innovate, and we cannot grow. We will be stuck in a cycle of dependency, importing goods we should be producing ourselves, and exporting the wealth and opportunities that should belong to our people.

The consequences of this failure are dire. Our economy will stagnate, our people will suffer, and our nation will become a shadow of what it could have been. We will be left behind as other nations industrialize and prosper. Our infrastructure will crumble, our social services will collapse, and our future will be bleak.

But it doesn’t have to be this way. Kenya has the potential to be a manufacturing powerhouse. We have the resources, the talent, and the drive. What we lack is the political will. Our government must stop sabotaging our own economy. We must overhaul our energy policies to make power affordable and accessible. We must simplify the tax code and make it supportive of, rather than punitive to, manufacturers. We must reform our education system to value and promote blue-collar jobs and manufacturing careers.

Our economic policies must prioritize local production over imports. We must create a business environment that encourages investment in manufacturing and production. And the banks must be compelled to lend to the sectors that will drive our economy forward, not just those that offer the quickest returns.

If we do not change course, Kenya is doomed. We will be a nation of traders and consumers, forever at the mercy of those who control the flow of goods into our country. But if we embrace manufacturing, we can build a strong, sustainable economy that creates jobs, fosters innovation, and ensures that the wealth and opportunities of our nation are shared by all Kenyans, not just the elite.

The time for change is now. Kenya must drop everything and focus on manufacturing and production. Our future depends on it.

About Steve Biko Wafula

Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters.He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

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