The manufacturing sector is experiencing renewed growth as the country records a steady influx of new investors setting up factories across the country, signalling strong confidence in the country’s business environment.
Principal Secretary for Trade and Investments Dr. Juma Mukhwana said the country is recording at least three or more new manufacturing investors establishing factories every week, noting that the trend reflects rising investor confidence despite concerns raised in some quarters about the state of the sector.
Addressing reports of some local manufacturers scaling down or exiting the market, the PS dismissed the claims as exaggerated, attributing them largely to stiff competition. He said whenever one investor exits, three or more are setting up operations, underscoring the sector’s resilience.
The PS said the government has put in place measures to enhance the ease of doing business, including the s aggregation centres and industrial parks, which has increased the country’s attractiveness as an investment destination.
He noted that manufacturing contributes about 10 percent of the country’s economy and remains the second-largest employer after the government, describing it as a key pillar for wealth creation, innovation and national development.
“Out of the 50 richest people in this country, 45 have roots in manufacturing. This sector is a proven pathway to wealth creation and national development,” he said.
He was addressing stakeholders and Kenyatta University students during a career forum aimed at exposing young people to opportunities within the industrial sector.
However, industry players present said the sector is facing challenges, with some manufacturers complaining of harsh policies, high compliance costs and regulatory uncertainty that have increased the cost of doing business, forcing some firms to consider scaling down or winding up operations.
An industry player, Robert Magara called on the government to streamline regulations and eliminate unnecessary policy bottlenecks, saying this would ease operations, restore confidence among local investors and enhance competitiveness.
In response, the PS assured investors that the country remains one of the favourable business environments in the region and that the government is committed to reforms that will support industrial growth.
He urged the youth to move away from over-reliance on traditional white-collar employment and consider manufacturing as a viable and rewarding career path, encouraging them to invest in skills and innovation to take advantage of the expanding industrial base.
By Muoki Charles
