One of the key sectors capable of accelerating economic growth is manufacturing. Hence, any country that aspires to achieve economic progress must place manufacturing at the heart of its strategic development plans.
Recognizing this fact, Kenya has been constantly looking to improve the sector that for years has languished below its weight. However, there are a number of obstacles that stubbornly stood in the way.
The main challenges hindering this vital sector include the high cost of electricity, unfriendly policies, and lack of targeted incentives.
This set of obstacles has reduced the sector’s contribution to GDP from about 10% in 2014 to less than eight% today.
Fortunately, there is a road map to revive the sector and pull it out of the quagmire it has fallen into.
Kenya is looking to increase the sector's contribution to GDP from 8% to at least 15% by 2027, before raising it to 20% by 2030. This is ambitious.
It is encouraging to see Kenya starting to develop strategies that, if well implemented, will revitalize the manufacturing sector.
The first is to promote the establishment of economic zones where local and multinational companies can set up manufacturing and assembly plants. Another strategy is to establish assembly and manufacturing parks in the provinces aimed at encouraging and ingraining an entrepreneurial culture that can then lead to the launch of the manufacturing process directly from the grassroots.
“Democratizing” manufacturing by creating proper infrastructure in every corner of the country is a proven approach to achieving inclusive economic growth that will lift all boats including those of the “crooks”.
These parks will stimulate the creation of cottage industries that can be nurtured and transformed into manufacturing giants.
With these parks and special economic zones, Kenya is on the right track to unleash its industrialization potential.
It is necessary for the country to draw up a clear and solid roadmap on how to reconcile energy needs and supplies. A complete transition to green energy and rapid industrialization growth are not mutually exclusive goals. Embracing new technologies such as nuclear energy will enable us to avoid the risk of not achieving the 100% transition target set for 2030.
The writer is CEO of the Energy and Nuclear Energy Agency