Manufacturers rally for Government support to strengthen investment and exports

Tuesday, 17th February 2026, Nairobi: Kenya's manufacturing sector has issued a strong call for coordinated government support to unlock industrial growth, strengthen competitiveness, and expand intra-African trade. This was during the launch of the Manufacturing Priority Agenda (MPA) 2026, by Kenya Association of Manufacturers (KAM).

The MPA comes at a critical time for the manufacturing sector, which contributes 7.3% to the country's Gross Domestic Product (GDP), despite its central role in job creation, generating government revenue, innovation, exports, and linkages across agriculture, services, and logistics. While Kenya's economy remains stable, high production costs, regulatory burdens, delayed VAT refunds, and limited regional trade integration continue to constrain industrial expansion.

Speaking during the launch, Principal Secretary for MSMEs Development, Susan Mangeni, reaffirmed the government's commitment to strengthening local industry as a driver of inclusive growth and national prosperity. "With the right support, our local industries remain the cornerstone of job creation and sustainable growth. We must commit ourselves to building, creating, and adding value locally and to proudly consuming and promoting products made right here in Kenya."

She noted that manufacturing is central to the Bottom-Up Economic Transformation Agenda (BETA), which aims to raise manufacturing's contribution to GDP to over 20% by 2030, increase exports to 30%, and attract up to USD 10 billion in foreign direct investment through value addition, SME empowerment, and industrial parks.

Across the world, governments are taking bold steps to strengthen domestic manufacturing. The United States has enacted pro-manufacturing legislation and tariff measures to secure supply chains and attract investment. The United Kingdom has expanded export finance to support manufacturers and create jobs, while Vietnam has sustained rapid industrial growth through tax incentives, export zones, and policy alignment that prioritizes local production.

KAM Board Vice Chair, Hitesh Mediratta, emphasized that Kenya must learn from countries that actively protect and promote their industries through deliberate policy, incentives, and trade measures. "Countries that prioritize manufacturing reap tangible economic benefits. Kenya must take cue and decisively strengthen support for its manufacturing sector by enhancing competitiveness and advancing export-led growth. In 2024, Kenya exported goods worth over KSh 1.1 trillion, with 38.3% of those exports destined for African markets, showcasing the continent's strategic importance for our locally manufactured products. By fully leveraging frameworks such as the African Continental Free Trade Area (AfCFTA), East African Community (EAC), addressing non-tariff barriers, and lowering the cost of production, we can expand intra-African trade, achieve economies of scale, and position Kenya as a regional manufacturing hub."

The call for stronger industrial protection, deeper regional integration, and export competitiveness highlights a broader reality: Kenya's manufacturing future will depend on deliberate policy alignment and sustained public–private collaboration. As global competition intensifies and regional markets become more integrated, industry leaders stress that Kenya must act with urgency to remove structural bottlenecks and position local manufacturers to scale.

KAM Chief Executive, Tobias Alando, described the Manufacturing Priority Agenda 2026 as a practical and time-sensitive roadmap for unlocking the sector's full potential and anchoring Kenya's next phase of economic growth. "The Manufacturing Priority Agenda 2026 is not simply a policy document. It is a structured articulation of what must happen if manufacturing is to play its rightful role in Kenya's economic transformation. By improving competitiveness, strengthening export capacity, integrating SMEs into value chains, and aligning agriculture with industry, we create a positive domino effect that accelerates investment, job creation, and sustainable growth."

The MPA 2026 provides a clear blueprint for industrial transformation: aligning policy, investment, and market access to build a globally competitive manufacturing sector. The strategic roadmap is anchored on four pillars: Global Competitiveness, Export-Led Industrialization, SME Development, and Agriculture for Industry; designed to position manufacturing at the center of Kenya's economic transformation. The report marks a pivotal moment to strengthen local industry, deepen intra-African trade, and lay the foundation for a resilient, globally respected manufacturing economy.