Nyeri:Kenya is formulating a new national industrialisation policy to transform its manufacturing sector into an export-driven industry. The policy aims to increase manufacturing’s contribution to the country’s GDP from the current 7.1% to 15% by 2030, with a long-term goal of reaching 24% by 2063.
According to Kenya News Agency, Industrialisation Secretary Prof. Erastus Gatebe stated that the policy will create a framework to accelerate manufacturing, industrialisation, and trade, addressing the shortcomings of the current industrial policy, which predates the 2010 constitution. This was discussed during a public participation event in Nyeri that involved participants from Nyeri, Murang’a, Nyandarua, and Kirinyaga counties.
Prof. Gatebe emphasized the necessity of aligning the country’s industrial development agenda with the 2010 Constitution and emerging economic opportunities. The new policy will introduce measures to facilitate investment in manufacturing, process local raw materials, and add value to agricultural and other products for both domestic and international markets. Additionally, the strategy will promote digital technology adoption to enhance productivity and competitiveness in manufacturing.
The proposed policy prioritises export-led manufacturing and aims to leverage regional and continental markets, such as the African Continental Free Trade Area and the East African Community, to expand the demand for Kenyan-made products. This approach targets reaching approximately 1.4 billion buyers in Africa and 700 million in East Africa.
Furthermore, the policy intends to align training with industry demands to equip youth with relevant skills for employment, addressing the unemployment crisis. It also plans to tackle issues like high production costs, which affect investor confidence and product competitiveness. Counties are encouraged to explore renewable energy options, including solar power, to reduce operational costs.
To facilitate cooperation between county and national governments, the policy proposes the establishment of County Aggregation and Industrial Parks (CAIPs). These parks will help counties organise raw materials, identify competitive value chains, and attract investors for local resource processing.
Nyeri County Executive Committee Member for Trade, Culture, Cooperatives, and Tourism, Dr. Lucy Kiogora, endorsed the policy, highlighting its potential to expand industrial development beyond traditional manufacturing hubs. She pointed out that counties, historically suppliers of raw materials, can benefit from local industrial processing, creating employment and attracting investors.
The draft policy is currently open for public input, with citizens invited to submit their views until October 23.
