New push for manufacturing and branding in counties to spur export trade

Esther Mwangi and Nelly Kiarie-KNA

County governments have been urged to implement strategies that will enhance value addition on agricultural commodities for export to attract premium prices for Kenyan produce in local and international markets.

The Principal Secretary (PS) in the State Department for Industrialization, Dr Juma Mukhwana, said there is a need for county governments to encourage industrial investments in aggregation in manufacturing, branding, packaging, labelling, and logistics, that will enable the country to reduce reliance on imports.

This will in turn bolster economic development and help generate new value-added products that will increase foreign exchange earnings.

The PS regretted that Kenya had for long exported commodities in raw form, with little investment in value addition despite the country having an immense potential to command a larger share of both local and global markets, adding that there is need to encourage trade in enriched products.

Noting that a large number of international goods were blended with Kenya's produce, Dr Mukhwana stated that the government is engaging devolved units, state and non-state actors, in developing a pathway to operationalize the County Aggregation and Industrial Parks (CAIPs), which he said, were being modelled to drive growth by diversifying Kenya’s exports, adding value, creating new products and opening-up new markets.

Dr Mukhwana said counties should start getting ready for the operationalization of industrial parks through initiatives such as constructing aggregation centres for agricultural produce with the requisite amenities to support post-harvest management before being collected for processing, as well as organizing farmers into groups or cooperatives for group marketing.

He called on counties to work with the national government to create and sustain an environment in which export-oriented industries could thrive by leveraging economies of scale, shared infrastructure and access to global markets.

To operationalize County Aggregation and Industrial Parks (CAIPs) in Kenya, the Principal Secretary observed that a multi-faceted approach was needed towards focusing on product identification, market analysis, infrastructure development and capacity building.

He said counties should first identify competitive products with strong market demand in their respective jurisdictions and ensure adequate supply chains, adding that infrastructure including roads, electricity, water, internet, and transportation is crucial for the parks' functionality.

“Counties must invest in staff training and providing support for Micro, Small and Medium Enterprises (MSMEs) as they are essential for the parks' success,” the PS added.

Dr. Mukhwana made the remarks during a meeting of the National Technical Implementation Committee (NTIC) on the County Aggregation and Industrial Parks (CAIPs) held at the Kenya Industrial Training Institute (KITI) in Nakuru.

The event brought together County Executives from Nakuru, Busia, Kakamega, Bungoma, Kwale and Kisii Counties, in deliberating on the policy framework for the CAIPs.

The PS said county governments could support industrial parks by offering tax breaks, subsidies and streamlined permitting processes in addition to playing their role in marketing the parks to attract businesses and investors and by ensuring access to skilled labor through training programs.

The PS emphasized the need for the county governments to establish strong linkages between the CAIPs and other relevant sectors such as agriculture, tourism, and manufacturing and also implement measures that would guarantee the long-term sustainability of the parks, including financial viability and environmental protection.