KENYA must convert its industrial potential into investment opportunities to boost manufacturing and exports and cut on imports, Industry PS Juma Mukhwana now says.
This comes as the country’s industrial sector continues to grapple with infrastructure gaps, low technology adoption and weak industry-research linkages, prompting the government to intensify efforts to accelerate manufacturing growth, attract investment and reduce reliance on imports.
The government is targeting an increase in manufacturing’s contribution to gross domestic product (GDP) from the current eight per cent to 15 per cent by 2027 and 20 per cent by 2030.
This ambitious plan will however require expanded production, stronger local supply chains and increased investment, with industry players also calling for lower production costs and a predictable tax environment, lest the country misses its targets.
Speaking ahead of the Kenya Industrialisation Summit 2026 in Nairobi, set for November 2-7, the PS said the government was seeking to address the constraints holding back the sector while improving the competitiveness of locally manufactured goods.
“Despite our efforts, manufacturing still contributes approximately eight per cent of GDP, against our national target of 15 per cent by 2027 and 20 per cent by 2030,” Mukhwana said.
“We are faced with challenges of infrastructure gaps, low technology uptake and weak industry-research linkages. At the same time, we have huge opportunities."
These opportunities include Kenya’s youthful population and access to the African Continental Free Trade Area (AfCFTA), which covers a market of about 1.4 billion people.
The government is targeting investment in agro-processing, textiles and apparel, building materials, pharmaceuticals and automotive manufacturing, sectors considered critical to value addition, job creation and expanded local supply chains.
Kenya’s industrialisation agenda is anchored on Vision 2030, the Bottom-Up Economic Transformation Agenda and AfCFTA, with the State Department for Industry seeking to attract investors, strengthen micro, small and medium industries (MSMIs) and improve the competitiveness of Kenyan products.
The Nairobi summit will be held under the theme, “Driving Industrial Growth through Investment, Manufacturing, Trade, Innovation and Sustainable Financing.”
“This conference is to convert those challenges into investable opportunities,” Mukhwana said.
More than 2,000 participants, including government officials, manufacturers, investors, development partners and researchers, are expected to attend the six-day event.
The government expects the summit to produce policy recommendations to strengthen the competitiveness of Kenyan products, investment commitments for industrial projects and stronger links between government, industry, academia and development partners.
It also aims to increase the visibility of Made-in-Kenya products and expand the participation of women, young people and persons with disabilities in industrial value chains.
According to the Kenya Association of Manufactruers, raising the sector’s GDP share from eight per cent to 15 per cent by 2027 will require accelerated industrial output, lower production costs, improved access to capital and technology, and policies that enable local firms to compete effectively against imports.
High electricity costs, taxation and overall costly production continue to be blamed for making Kenyan products uncompetitive, with cheaper imports eating away local producers’ market share.
A stronger manufacturing sector, industry players say, offers a pathway to job creation, export growth and reduced dependence on imported finished products.
