Industry calls for sector-specific approach to boost manufacturing

Kenya Association of Manufacturers (KAM) has called for a sector-specific approach to resolve the challenges hampering the growth of Kenya’s manufacturing sector.

This was during the launch of sector profiles for the Sugar, Leather & Footwear, Automotive, Building, Mining & Construction and Salt Sectors, and the Maize Value Chain Report.

KAM Chair, Mr Mucai Kunyiha urged stakeholders to be deliberate and intentional, in nurturing the local manufacturing sector.

“This entails addressing the sector-specific challenges and cross-cutting issues in industry, as we seek to create a sector (manufacturing) that has a multiplier effect in the economy. Some of these issues include: inadequate guidance on Buy Kenya Build Kenya; regulatory overreach; unfavourable tax regime; prolonged delays in the review of EAC Common External Tariff (CET); reliance on imported raw materials; lack of access or the high cost of credit and illicit trade,” explained Mr Kunyiha.

Ministry of Industrialization, Trade and Enterprise Development Director for Private Sector Engagement, Mr Stephen Odua appreciated the need for a sectoral approach towards driving industrialization in the country.

“Undoubtedly, all interventions to grow the manufacturing sector must start somewhere. The country needs to look at its comparative advantage in various areas and come up with customized interventions to address the critical pain areas in each of the value chains. The sector and value chain perspective adopted by KAM comes in handy in supporting information-based policy formulation, investments, and facilitation for various specific value chains,” added Mr Odua.

The reports are part of KAM’s initiatives towards supporting the Manufacturing Pillar of the Big 4 Agenda by informing pro-industry policy formation in the country. They also provide industry perspectives and insights into the various manufacturing sectors.