In order to encourage industrialization, the government is driving manufacturing investments. (PS) at Kenya.

Posted on : Friday , 4th April 2025

Dr. Juma Mukhwana, principal secretary for industry, has urged Kenyans to put money into the nation's manufacturing sector, claiming it has the capacity to spur economic growth and industrialization.Using shared production facilities established by the government at County Aggregation and Industrial Parks (CAIPs), Dr. Mukhwana said the State was enticing both domestic and foreign investors to enter the profitable industry. The PS stated that investments in manufacturing would lessen Kenya's dependency on imports, provide jobs, and promote prosperity, but he was concerned that most Kenyans frequently ignored manufacturing, which was a threat to the nation's industrial future.

Speaking in Nakuru, Dr. Mukhwana clarified that the government had started initiatives to promote locally produced items, create an industrial fund, and construct industrial spaces on public land in order to reduce manufacturing costs. In order to position Kenya as a manufacturing hub for Africa and the world, the PS listed Dongo Kundu, Naivasha, Thika, and Eldoret as some of the newly created special economic zones.

According to him, the Ministry was working to create equitable and sustainable connections between farmers who produce raw materials and industry. It was also creating policies, plans, and rules to support manufacturing through CAIPs, which allowed the nation to introduce low-cost manufacturing (on government land) in the counties and attract numerous small-scale manufacturers to the industry. In order to turn the Central Rift region into a major commercial hub, Dr. Mukhwana said that the multi-billion dollar Nakuru County Aggregation and Industrial Park (CAIP) at Ngongongeri Farm in Njoro Sub-County had finally begun construction. It was anticipated to house a range of industries, including ICT hubs, energy-sector companies, engineering and construction firms, and chemical industries. He went on to say that the industrial park will also have all of its supporting infrastructure, including water, electricity, and the park ring road, ready in three months. Due to the spatial layout, investors will then be given space and permitted to start operating right away.

He clarified that the Nakuru CAIP will cost Sh500 million in total, of which Sh116 million had already been disbursed by the National Government and Sh250 million by the County Government. The PS added that the government was currently constructing eight industrial shades for Njoro Sub-County's small-scale industries.

Busia, Murang'a, Kakamega, and Kirinyaga are among the other counties that have been selected for the project's initial phase. The PS expressed sorrow, saying, "Africa is punching below its weight, compared to Europe, which takes up only 9 percent of the world's population and a manufacturing of 25 percent, despite taking up 17 percent of the world's population and 3 percent of its manufacturing." To support Kenya's industrialization and export-led development agenda, Dr. Mukhwana reassured that the African Export-Import Bank (Afreximbank), Africa's trade development bank, had approved a number of initiatives. The bank is anticipated to provide Sh30 billion to finance the establishment and operation of industrial parks and Special Economic Zones (SEZs) to support the nation's export manufacturing and industrialization.

According to the Principal Secretary, the government is also encouraging small-scale manufacturers to enter the market, creating regulations to promote production through CAIPs, and fostering sustainable relationships between raw material producers and industry. According to Dr. Mukhwana, "this, along with the entry of many people, both citizens and foreigners, into the Kenyan manufacturing space, is slowly tilting the country to become a manufacturing hub for Africa and possibly for the world." The nation has also completed an Economic Partnership Agreement (EPA) with the European Union, which permits duty-free travel to 27 EU nations, according to the Principal Secretary.In order to give all citizens a high-quality life in a safe and clean environment by 2030, he said CAIPS and Special Economic Zones (SEZs) will support the growth of industrialization and middle income.

Kenya's manufacturing sector accounts for 7.6% of its GDP, which is significantly less than that of countries with more developed industrial systems.  The nation has become overly reliant on imports as a result of the low level of local industry formation, which results in trade imbalances and limits job possibilities.Kones said that the CAIP plan gives counties more economic clout to support local development across a number of industrial sites.  He included industrial parks that may serve as hubs for research and manufacturing, maximizing resources according to particular county assets.