Principal Secretary (PS) for Industry, Dr Juma Mukhwana, has urged Kenyans to embrace manufacturing as a way of growing the economy and bringing down the cost of living.
Dr Mukhwana, who presided over the opening of the Next Frontier Africa 2025 Summit, noted that Africa’s industrialization was only possible if Kenyans took advantage of the vast market opportunities to produce for export.
Citing trade agreements that Kenya had recently signed with the European Union, the United Arab Emirates, the United Kingdom and the African Free Trade Area, among others, the PS said that Kenya had half of the World’s market to trade in quotas and duty-free.
The PS regretted that Kenya only took advantage of one per cent of the African Growth and Opportunity Act (AGOA) partnership that is ending in September, calling on Kenya to tap more in the next agreement under negotiation.
“Everyone is looking to Africa for investment, but what is Africa doing to attract this investment?” It is only fair that we leverage such forums to pool resources and grow investments for the prosperity of the nation. We cannot continue to export raw materials and import finished products and expect to industrialize,” he remarked.
He noted that Kenya was importing 80 per cent of its basic commodities, with only 20 per cent of the commodities manufactured locally. Africa accounts for 17 per cent of the world’s population, which he contrasted with its manufacturing at 2 per cent of commodities worldwide.
“There is a need to revolutionize industry and manufacturing in Africa and specifically in Kenya. Africa needs to invest more on its own manufacturing to improve livelihoods before expecting foreign investments.
“If you import goods, you are exporting your jobs because someone from a foreign country is employed to do a job that a Kenyan would have been employed to do here. This move to manufacturing instead of importing would increase Africa’s manufacturing capacity,” added Mukhwana.
While urging participants to change their mindset about investment, Dr Mukhwana urged them to take advantage of the County Aggregation and Industrial Parks (CAIPs) to add value to their products before seeking markets.
He noted that the State Department for Industry was working to support small-scale and new manufacturers by providing spaces and manufacturing equipment.
The sectoral forum on strategic investment and inclusive growth by Kenya Development Corporation (KDC) brings together over 1,000 delegates and exhibitors from the private sector, government and development finance institutions to match-make, sign pacts and spotlight transformative investments across manufacturing, healthcare, tourism, post-harvest management, digital innovation, and climate resilience.
KDC CEO, Norah Ratemoh, noted that the summit would unlock sector-specific discussions for key private investors and policymakers aimed at driving inclusive economic growth and aligning them with priorities of the Bottom-Up Economic Transformation Agenda (BETA).
Speaking during the forum, KDC Chairperson Sakwa Bunyasi underscored the importance of channeling patient capital into strategic sectors, noting.
“Through BETA, we are focused on projects that yield high social impact. The goal is not just economic numbers, but transformation at the farm, factory, and firm level,” Bunyasi added.
KDC provides the private sector players with concessional financing, particularly for MSMEs and high-potential value chains, while supporting climate-resilient industrialization. A $40 million livestock value chain project is being rolled-out over five years, with the creation of a Green Fund also underway to finance climate-aligned manufacturing and projects.
Centum Investment Company CEO, Dr James Mworia, highlighted the need for long-term private equity and venture capital to unlock business growth.
“We provide capital as well as management support, financial control, and fundraising expertise to help build resilient enterprises that then translate to much-needed formal employment,” he noted, pointing out that Kenya needs to absorb over 700,000 job seekers annually, far beyond the current 100,000 formal jobs created.
Mworia warned against punitive tax policies, arguing that, “Capital flows where the return is high and risk is low. He emphasized that private investment, currently contributing just one percent to GDP, was way below the global average of three per cent, calling on concerted effort to bridge the gap through equity rather than debt,” he said.
The decline in private investment in favor of government securities was flagged as a key risk to national economic stability, contributing to tax shortfalls, social shocks and security vulnerabilities.
By Anne Sabuni and Wendy Achieng
