The National Industrialization Policy

Download The National Industrialization Policy in PDF (1MB)


Since independence Kenya has made several initiatives towards the development and growth of the industrial sector. However, despite the efforts resulting into the country having
a relatively larger industrial sector in the region, it has not been dynamic enough to function as the engine of economic growth especially when compared to newly industrialized emerging economies due to various challenges. The sector has been inward-looking and has had low value addition especially to the available agricultural and natural resources. Similarly, weak institutional support for the development and growth of the local Micro, Small and Medium Enterprises (MSMEs), which have the potential for employment and wealth
creation, has resulted into slow industrial growth.

Under Kenya vision 2030 the manufacturing sector has been identified as the key driver for economic growth and development due to its immense potential in job and wealth creation,
and its high potential to the realization of the Millennium Development Goals (MDG).

As Kenya’s aspires to be a middle income, rapidly industrializing country, and globally competitive, an effective industrial policy framework to drive this process is required. In addition, the constitutional dispensation lays greater emphasis on renewed commitment to economic performance under the national and new devolved governance structure.

Furthermore, the pace of global technological changes makes it necessary for Kenya to develop an industrialization policy framework that is capable of responding to these rapid changes. It is therefore imperative to develop a policy framework and strategies to revitalise the industrial1 sector for effective contribution to national growth, employment and wealth

This policy framework focuses on value addition for both primary and high valued goods; and linkages between industrial sub-sectors and other productive sectors to drive the industrialization process and aims at providing strategic direction for the sector growth and development by:

  • creating an enabling environment for private sector-led industrial development and a business environment capable of attracting local and foreign investments for the
    sector growth and development;
  • taking into consideration, other existing policies, capacities and capabilities, the country’s strengths and weaknesses as well as the challenges and opportunities offered by globalization and regional integration;
  • recognizing the importance of promoting resource based industries, and in particular, labour intensive, export-oriented industries for increased productivity and growth in all the industrial sub-sectors, bearing in mind the impact of forward and backward linkages in the economy;
  • encouraging sustainable creativity and innovation to continually improve production process and the quality of products;
  • encouraging effective development of industrial human resource and specific skills for industry to enhance competitiveness;
  • identifying the foundational pillars and measures for the vibrancy and growth of the Industrial Sector and recommend appropriate policy interventions for the realization of the sector goals; and
  • providing a legal and institutional framework for substantial improvements in intra-governmental coordination, under a Public Private Partnership arrangement.


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