PS encourages manufacturing to spur economic growth
Anne Sabuni and Wendy Achieng-KNA
The 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 had officiated the opening of the Next Frontier Africa 2025 Summit, emphasized that Africa’s, and Kenya’s, path to industrialization is contingent upon the harnessing the continent’s vast market opportunities which scale up production for export.
Citing the recently signed trade agreements with the European Union, the United Arab Emirates, the United Kingdom, the African Continental Free Trade Area, and others, the Principal Secretary noted that Kenya has secured access to nearly half of the world’s market enabling the country to trade quota- and duty-free across these regions.
Unfortunately, Kenya has utilized only one per cent of the opportunities available under the African Growth and Opportunity Act (AGOA) which was set to conclude in September, the Principal Secretary said.
He urged the country to leverage a greater share of benefits in the upcoming agreement currently under negotiation.
Dr. Mukhwana observed that while the world has increasingly turned its attention to Africa for investment opportunities, the continent, in turn, needs to take deliberate steps to attract and sustain that interest.
He emphasized that it is essential to leverage such forums to consolidate resources and drive investment for national prosperity. He further noted that Africa cannot achieve industrialization by continuing to export raw materials while importing finished products.
The PS further observed that Kenya had been importing 80 per cent of its essential commodities, with only 20 per cent produced locally highlighting a significant dependence on external markets.
Additionally, he pointed out that while Africa accounted for 17 per cent of the global population, it contributed merely two per cent to global manufacturing, underscoring the continent's untapped industrial potential.
Dr. Mukhwana emphasized that there is an urgent need to revolutionize industry and manufacturing across Africa, particularly in Kenya.
He further stressed that the continent needed to prioritize investment in its own manufacturing capacity to uplift livelihoods, even before seeking increased foreign investment.
Mukhwana noted that by importing goods, Kenya has effectively been exporting its own jobs pointing out that such labor opportunities had gone to workers in other countries, rather than benefiting local citizens.
He emphasized that prioritizing manufacturing over imports would have significantly strengthened Africa’s industrial capacity.
Encouraging participants to shift their mindset on investment, Dr. Mukhwana urged them to capitalize on the County Aggregation and Industrial Parks (CAIPs) initiative, emphasizing the importance of adding value to their products prior to exploring market opportunities.
He noted that the State Department for Industry had been actively supporting small-scale and emerging manufacturers by offering access to production spaces and essential manufacturing equipment, in a bid to foster local enterprise and stimulate industrial growth.
The Sectoral Forum on Strategic Investment and Inclusive Growth, organized by the Kenya Development Corporation (KDC), brought together over 1,000 delegates and exhibitors from the private sector, government, and development finance institutions.
The event served as a platform for matchmaking, signing strategic partnerships, and showcasing transformative investment opportunities across key sectors—including manufacturing, healthcare, tourism, post-harvest management, digital innovation, and climate resilience.
KDC CEO, Norah Ratemoh, noted that the summit had catalyzed sector-specific dialogue among key investors and policymakers, advancing inclusive economic growth in line with the Bottom-Up Economic Transformation Agenda (BETA).
Speaking at the forum, KDC Chairperson Sakwa Bunyasi emphasized the need to direct patient capital toward strategic sectors to drive long-term economic growth.