The Kenya Association of Manufacturers (KAM) has unveiled its latest Manufacturing Priority Agenda (MPA) and the Agriculture for Industry (A4I) Report. These initiatives aim to set forth a comprehensive roadmap aimed at enhancing the competitiveness and growth of Kenya’s manufacturing sector.

The MPA is an annual publication that guides KAM’s advocacy efforts with the Government and its agencies. This year’s MPA is themed, Steering economic growth through the manufacturing sector for common good, and will drive KAM’s advocacy agenda for the year. It builds on the organization’s efforts to achieve Agenda 20BY30.

Additionally, the MPA Report offers a blueprint designed to overcome challenges, capitalize on opportunities, and propel Kenya’s manufacturing industry onto the global stage. According to reports, Kenya’s manufacturing sector contributed 7.8% to the GDP in 2022, representing a value of Ksh 3.18 trillion, and generated about 352,000 direct jobs.

Speaking during the launch, KAM Head of Policy, Research and Advocacy, Job Wanjohi, emphasized the significance of advancing policies to reset manufacturing and achieve Agenda 20BY30. He further acknowledged the government’s role in achieving milestones such as manufacturers now being able to claim input VAT on KPA charges, the finalization of the National Tax Policy, and the removal of VAT on exported services.

On his part, KAM Board Director and Trade and Tax Committee Chair, Bharat Shah highlighted the challenges hindering progress within the manufacturing sector. This included regulatory burdens and the high cost and instability of electricity. Mr. Shah urged for decisive action to reduce the regulatory burden and lower electricity tariffs to drive growth and enhance competitiveness.

With Kenya’s global competitiveness ranking improving from 115 in 2020 to 108 in 2021, there is a trajectory towards a vibrant manufacturing future. The KAM MPA and A4I reports serve as guiding beacons, outlining comprehensive strategies to scale up Kenya’s manufacturing sector and strengthen the linkages between manufacturing and agriculture.