• April 18, 2024
  • Last Update April 18, 2024 6:55 PM
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Manufacturers Steer Economic Growth in The Country

Manufacturers Steer Economic Growth in The Country

Nairobi,

Thursday April 4, 2024

KNA by Sharon Atieno

The Kenya Association of Manufacturers (KAM) has officially opened the Manufacturers Priority Agenda (MAP) and Agriculture for Industry (A4I) report of the year 2024 with the aim of steering economic growth of Kenya’s manufacturing industry.

The 2024 Manufacturing Priority Agenda and Agriculture for Industry Report serve as a roadmap to success, outlining comprehensive strategies to scale up Kenya’s manufacturing sector and enhance the linkages between manufacturing and agriculture.

The Cabinet Secretary, Ministry of Investments, Trade and Industry Rebecca Miano in a speech read on her behalf by  the Principal Secretary for Industry Dr. Juma Mukhwana said the manufacturing sector emerges as a promising solution, capable of absorbing the growing workforce and providing a sustainable livelihood.

Miano said industrialization has served as an economic growth while noting that the challenge facing Africa is its high population of about 1.3billion which accounts to 17 percent of the world’s population.

“Industrialization has lifted people out of poverty in Europe whereas in Africa it only benefits a few people,” she said.

The CS who singled out agriculture as a supplier of raw material for industries noted that KAM has been lowering the price of the buyer hence making the producer to stop producing goods.

She said the industry has a responsibility to create the value chain and warehouse to stabilize suppliers, Small, Medium Enterprises and farmers to enable all involved in the partnership benefit.

Miano said the taxation issue is a must because KAM will require road, electricity and water.

“Taxation must be part of the process by implementing the 10percent intermediate, 25percent global capacity and 35percent local capacity.

She urged KAM to only import what Kenya cannot manufacture while citing that every time it imports goods, it exports jobs for young people.

“Reengineer some of the internal process by working with farmers in order to make the process successful and competitive,” said the CS

Speaking during the event, Principal Secretary, State Department of Energy Alex Wachira said that to increase food security and reduce the import for use, manufacturers need to consider the cost of power.     

Under the issue of redundancy, the PS said that investing in infrastructure needs a lot of funding saying that the ministry of Energy is investing 3.5billlion in improving substantial spaces.

“The government is fully committed in providing affordable and reliable energy to manufacturers and citizens aligned to Bottom-up Agenda and ensures it is accessible to the private sector,” he said.

The PS added that the government has implemented measures and additional power capacity including framework to attract and facilitate various sectors.

He added that the government will continue to invest in renewable sources including wind solar, geothermal to increase the production while that the ministry of energy and petroleum will provide resources to the energy sector as well as to the management.

In his remarks, the Kenya Association of Manufacturers Chairperson Rajan Shah said that the potential of manufacturing and agriculture in driving economic growth cannot be overstated.

Shah said that by producing crops and livestock, and manufactured goods, the two sectors create opportunity, empower community and unleash the entrepreneurial spirit that lies dormant within the nation.

He announced that with over 800,000 young people entering the workforce each year, industrialization and agriculture advancement offer lifelines and pathways to a better future for the generations to come.

“KAM ambition of increasing Kenya’s manufacturing Gross Domestic Product to 20 percent by 2030 is a bold declaration of intent,” he stated.

The Chair said by harnessing the transformative power of manufacturing, KAM can unlock new avenues of growth, create sustainable livelihoods and build a future that is prosperous.

He cited regulatory burden, high cost and instability of electricity and taxation as the major challenges of concern for the private sector.

Shah said that KAM aims to propel Kenya’s manufacturing sector through the four pillars which include export-led growth, SME development, agricultural for industry program and global competitiveness.

He said KAM working in collaboration with the government will unlock new opportunities, address bottlenecks and ensure that policies serve the best interest of all Kenya

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