Let’s pave way for the youth to venture into manufacturing

By Tobias Alando

Kenya’s manufacturing sector continues to be the largest creator of job opportunities in the private sector. According to the 2025 Kenya National Bureau of Statistics (KNBS) Economic Survey, the sector had the highest employment opportunities in 2024, accounting for 15.9 per cent of the total private sector employment. Not only does manufacturing generate new opportunities for employment but also builds on existing ones through backward integration with other sectors such as agriculture, transport and logistics. With these opportunities in place, citizens have an opportunity to earn decent wages to sustain their livelihoods with access to basic and secondary needs, whilst also growing as professionals in different careers.

As a country, the youth account for the majority of our population, and therefore play a significant role in our socio-political and economic development. As such, as we develop and implement policies geared towards our nation’s prosperity, their input and voice cannot be ignored. In both the private and public sector, for instance, they account for a significant number of the workforce, a clear indication of a vibrant and dynamic labour force that is resourceful in accelerating the country’s productivity and overall economic growth.

Despite being a resourceful demographic of our population, they face a myriad of challenges that limit them from realizing their full potential. In the manufacturing sector for instance, there exist some hurdles that discourage them from venturing into it. These include inadequate access to investment capital and funding, skills gap and mismatch as well as policy and regulatory framework gaps. As a nation, therefore, how best can we address these hurdles to support our youth to venture into the manufacturing sector?

A multi-faceted approach is imperative in achieving this. Firstly, we need to work towards ensuring our tertiary training institutions incorporate modern manufacturing technologies and innovations into their curriculum. By so doing, learners will have a clear understanding of what to expect in the job market, and therefore easily integrate their classroom acquired knowledge and skills with real job experience. This also goes a long way towards saving manufacturers training costs they would have otherwise incurred in retraining new hires.

At KAM, we are proactively supporting youth involvement in manufacturing through Dual Training as well as supporting the Ministry of Labour and Social Protection’s Manufacturing Sector Skills Committees in developing and validating industry-driven curricula. We also sit on the National Dual Training Advisory Committee, that was inaugurated in May 2025 to oversee the implementation of the Dual Training Policy. This policy, approved by the Cabinet in January 2025, aims to strengthen the link between technical training and industry by integrating work-based learning into Technical and Vocational Education and Training (TVET).

The Kenya Youth Development Policy, 2019 identifies bureaucracies and a lack of collateral in accessing loans as a key hindrance for youth to access financial resources. This puts them at a disadvantage in the innovation space within the manufacturing sector, as they miss out on resources to bring their ideas and technological innovations to life.  The Start Up Bill, 2022 provides for the establishment of incubators that provide fiscal and non-fiscal support to startups, through the Kenya National Innovation Agency (KeNIA). The Bill should be expanded to incorporate all new innovations and inventions, including those in the line of manufacturing, as opposed to singling out technology-based ones only. This would be a good step towards ensuring financing programs and opportunities remain favorable for the youth.

Policy interventions and government support are also key in paving the way for the youth to venture into manufacturing. We laud the government for some of the efforts it has put in place thus far to promote economic development in the country, including the establishment of industrial parks and Special Economic Zones (SEZs) across the country to create an enabling environment for investors through integrated infrastructure facilities and incentives that eliminate barriers to business. To encourage more youth to take advantage of such opportunities, the government should consider extending more favorable subsidies and tax incentives for youth who intend to establish manufacturing firms in these facilities. By so doing, they will be better equipped to remain competitive whilst also contributing to the country’s overall economic prosperity.

Our youth have the potential to spur our country’s economic growth and development to greater heights. As we commemorate the World Youth Skills Day that focuses on youth empowerment through AI and digital skills, we need to work towards ensuring they are actively empowered and equipped to participate in building our nation, especially by venturing heavily into the manufacturing sector. Our prosperity lies in their active involvement in advancing our nation, and we must therefore make it conducive for them to do so.

The writer is the Chief Executive of Kenya Association of Manufacturers and can be reached at ceo@kam.co.ke.