Manufacturing

The Kenya Vision 2030 Strategy aims to transform Kenya into a newly industrializing middle income country, providing a high quality of life for its citizens by 2030.  The manufacturing sector has been identified as one of the key sector to support the growth Strategy and address incidences of high poverty levels and unemployment in the country. The sector also provides impetus for achieving the Millennium Development Goals particularly Eradication of extreme poverty and hunger, Environmental sustainability and Global partnerships. The vision of the sector is the development of a “robust diversified and competitive manufacturing sector”.  Concerted efforts are currently being made to revitalize the sector in order to achieve the vision 2030 goals.
This will be achieved through the implementation of the following strategies: (i) restructuring key local industries that use local raw materials but are currently uncompetitive(e.g. sugar and paper manufacturing); (ii) exploiting opportunities in value addition to local agricultural produce; (iii) adding value to intermediate imports and capturing the “last step” of value addition (e.g. in metals and plastics).

 Flagship Projects for 2008 – 2012

Development of industrial and manufacturing zones: The initial pilot for the Special Economic Cluster (SEC) will be set up in Mombasa to allow for easy importation of necessary raw  materials and exporting of finished goods. The project will include an agro-industrial zone incorporating activities such as blending and packaging of fertilisers, teas and coffees, and a consolidated meat and fish processing facility to encourage growth of offshore fishing. The second SEC will be located in Kisumu to allow for access to regional markets and availability of limestone to support cement, chemicals and metals industries; agro-processing through increased horticultural production along the lakeshore.

Development of at least five SME industrial parks and specialised Economic Zone in key urban centres: A pilot metal SME park will be located in Nairobi due to the proximity to most important markets. A pilot agro-processing SME park will be located in Eldoret because of the location in high potential agricultural area and access to an airport. A second agro-processing SME park which targets processing of fruit juices and vegetables oils will be located in Mombasa. Another SME park will be located in Kisumu for agro-processing of vegetables, horticulture, fish processing, and fruit processing. The fifth SME Park will be located at Nakuru for meat processing (with tannery).

Other Programmes
• Product and market diversification and development programmes;
• Research development and commercialisation programmes;
• Create an MSME research and development, risk and venture capital fund;
• Create a Business and Technology Incubation Programme to include an incubation Fund;
• One village one product; and
• 4 K (KEBS, KIRDI, KIPI, KNFJKA) MSE 2030 initiatives Project

Policy, Legal and Institutional Reforms


 Legal Institutional Framework: Enact a legal and institutional framework to harmonise regulations dealing with manufacturing and other sectors and eliminate overlaps in functions across Ministries dealing with manufacturing. This is to be done by enactment of a National Industrial Development Act.
Counterfeits and Contraband goods: Fast track the enactment of the Anti-counterfeit Act.

Appropriate Regulatory Framework: Rationalise business licensing and an efficient regulatory framework to facilitate doing business. Further there will also be need to harmonise the operations of the regulating bodies within the East African Community (EAC) region particularly with regard to product standards.
Rationalise Taxation and Eliminate Duty Anomalies: Simplify tax administration to be responsive to the

Recent Developments

  • The development  and current implementation of the Master Plan for Kenya’s Industrial Development (MAPSKID) in 2008  which provides a road map for industrial growth and development in particular, the manufacturing sector
  • The Ministry of industrialization in collaboration with Kenya National Bureau of Statistics has also embarked on Census of Industrial Production which will provide up to date information on industrial sector.
  • A cluster approach led by the National Economic Council(NESC) and the Private sector Development Secretariat ( headed by the Ministry of Trade) targeting the development of a selected number of economic clusters and Finalization of the industrialization policy.
  • Public-private sector consultations have improved significantly through the Prime Ministers’ roundtables, sector forum, the technical ministerial stakeholders’ forums, National Economic Social Council (NESC) – the industrialization sector committee handling the industrialization agenda chaired by the private sector.
  • The existing bilateral cooperation between Kenya Government and emerging economies for sharing experiences and building capacity for industrial development.
  • The development of the Small and Medium Enterprises Bill through consultative process, aimed at integrating the SME into larger economy and establishment of institution framework for the management and coordination of the SME sector.
  • Policy Legal, Regulatory and Institutional Reforms: the enactment of the Anti Counterfeit Act 2008 which has established the Anti Counterfeit Agency to address the  entry into the local market of sub-standard, counterfeit and contraband products; the development of a draft Special Economic Zones policy and Bill to provide regulatory framework for the establishment and management of Special Economic Zones and industrial Parks; and  reforms in the standards sector  which include the formation of Kenya National Accreditation services (KENAS) and the establishment of the National Standard Institute (NSI). The Ministry of Industrialization has reviewed its organization structure, expanded its outreach country wide, and their capacity has been enhanced through deployment, recruitment and training.


Key priority actions for 2011

  • Development of industrial parks: Conduct feasibility studies for the development of the parks.Finalization of the Policy Framework for Industrialization (Comprising of the previous National Industrialization and Incubation Polices).
  • Liaise with other stakeholders (Ministry of Industrialization & Ministry of Higher Education, Science & Technology) to carry out a nationwide survey of the existing technologies and prepare a National Technology Directory/Inventory
  • Upgrade the standards infrastructure by building capacity for KEBS, KENAS and NSI.
  • Enhance the capacity for industrial development through skills development, and equipment.
  • Promote creativity and innovation through protection of industrial property rights.
  • Regional Integration: removal of Non-Tariff Barriers (NTBs), fast tracking Economic Partnership Agreements (EPAs) and expansion of export markets for manufactured goods.

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