Officials from the Kenya Association of Manufacturers (KAM) and the Ministry of Industrialization and Enterprise Development have today met to discuss various issues affecting the manufacturing sector in Kenya.
KAM, represented by among others, Vice Chairperson Flora Mutahi and CEO, Phyllis Wakiaga, highlighted a number of issues which include:
- The need to effect the Buy Kenya Build Kenya Policy
- Preferences on Local Procurement
- Improved competitiveness and reduction of the cost of doing business
- Cost of energy and labour
- Delays in receiving payment from Government resulting in cash flow issues
- Duplication of regulatory bodies adding to the cost of doing business
PS Julius Korir, representing the ministry, had to this to say about the challenges presented “The Ministry is the industry arm in government mandated to grow this sector and will be keen on doing that through enhancing the ease of doing business.The Government is also committed to the growth of local manufacturing and is keen to drive an enforcement criteria for local preferences. Every Government Project contract has a local content clause that indicates 40% of inputs for the project should be sourced locally”
He also added that the Ministry is committed to work with KAM to develop a manufacturing policy that will increase manufacturing contribution to the GDP to above 15% within the next 5 years and also create 1 million jobs. This would also guarantee markets for the products created through the Buy Kenya Build Kenya Policy.
KAM CEO Phyllis Wakiaga responded to the PS remarks by adding “The Manufacturing Sector in Kenya has the potential of great growth and can play a particularly important role in putting Kenya on a sustainable growth path, only if it is adequately supported. If this happens, our impact as an industry will not only be felt in the immediate term, but will have a lasting effect on the future of our economy.”