Ministry Milestones

Regeneration & Expansion of the Manufacturing Sector

Description Enhancement and regeneration of the local manufacturing sector in Kenya
2013
(1.5%) negative growth of the manufacturing sector in 2013 driven by: 
  • Increased counterfeit goods displacing local products. KSh.489 million worth of suspected counterfeit goods seized
  • 38 unresolved Non-Tariff Barriers hindering exports to the EAC region
  • Poor pricing of commodities, insufficient volumes and irregular standards, creating challenges for local producers to source commodity inputs 
Current Status 3.5% positive growth in the manufacturing sector in 2016 driven by; 
  • Sale and rehabilitation of moribund industries 
  • Removal of regional trade barriers to grow exports
  • Tariffs in selected sectors to protect local infant industries
  • Establishment of a commodities exchange
  • Establishment of industrial parks 
  • Entry of new global brands and capacity expansion by local brands 
Progress
5% growth in the manufacturing sector in between 2013 and 2016 driven by:
  • Sale and rehabilitation of moribund industries 
    • Rehabilitation and sale of Pan paper 

  • Removal of regional trade barriers to grow exports
    • 20 Non-Tariff Barriers eliminated through Kenya’s negotiations with other EAC partner states

  • Tariffs in selected sectors to protect local infant industries
    • Kenya currently operating on sugar safeguards which will expire in 2018.

  • Establishment of a commodities exchange
    • Feasibility study for establishment of the Commodities Exchange and Cabinet Memorandum to establish the Commodities Exchange submitted to Cabinet
    • This is expected to lead to regularisation of commodities standards, aggregation of volumes which would fetch better pricing in the market 

  • Establishment of industrial parks 
    • Setting up of the Kenya Leather Park - Machakos - 500-acre Master Plan completed with all approvals done and development works commenced. 11 applications by local and international investors received 

  • Entry of new global brands and capacity expansion by local brands 
    • Volkswagen, plans to assemble 5,000 cars per year  
    • Peugeot plans to assemble 5 models in Kenya 
    • Toyota to expand their assembly plant from the current 2,400 vehicles annually 
    • Ashok Leyland with annual capacity of 1,200 buses 
    • Wrigleys, setting up Kes.5 billion plant in Machakos County
    • GZ Industries setting up the only can manufacturing facility in the region worth Kes.10 billion at Sultan Hamud in Mombasa
    • Tatu City new Industrial Zone with projected investment levels in excess of Kes.10 billion
    • Keroche Breweries undertaking Kes.5 billion expansion
Impact
  • Value addition opportunities for local produce and raw materials
  • Entrance of new investors creating linkages and opportunities for local suppliers
  • Creation of employment opportunities 

Regeneration & Expansion of the Manufacturing Sector

Contacts

  • Social Security House, Block A, 17th, 23rd Floor
  • P.O. Box 30418-00100, Nairobi, Kenya
  • Telephone: +254 20-2731531
  • Fax: +254 20-2731511
  • Email: This email address is being protected from spambots. You need JavaScript enabled to view it. 
    This email address is being protected from spambots. You need JavaScript enabled to view it. 

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