Nairobi: Principal Secretary for Industry, Dr Juma Mukhwana, has urged Kenyans to embrace manufacturing as a way of growing the economy and bringing down the cost of living. Dr Mukhwana, who presided over the opening of the Next Frontier Africa 2025 Summit, noted that Africa's industrialization was only possible if Kenyans took advantage of the vast market opportunities to produce for export.
According to Kenya News Agency, Dr Mukhwana highlighted the trade agreements that Kenya had recently signed with the European Union, the United Arab Emirates, the United Kingdom, and the African Free Trade Area, among others. He emphasized that Kenya had access to half of the world's market to trade in quotas and duty-free. Dr Mukhwana regretted that Kenya only took advantage of one percent of the African Growth and Opportunity Act (AGOA) partnership that is ending in September, urging Kenya to tap more in the next agreement under negotiation.
He questioned Africa's efforts to attract investment, emphasizing the need to leverage forums to pool resources and grow investments for national prosperity. Dr Mukhwana criticized the continued export of raw materials and importation of finished products, which hinder industrialization. He pointed out that Kenya imports 80 percent of its basic commodities, with only 20 percent manufactured locally, contrasting Africa's 17 percent global population share with its two percent contribution to worldwide manufacturing.
Dr Mukhwana advocated for a revolution in industry and manufacturing in Africa, particularly in Kenya, to improve livelihoods before expecting foreign investments. He warned that importing goods leads to job losses, as employment opportunities are outsourced to other countries instead of being created locally. He encouraged participants to change their mindset about investment and take advantage of the County Aggregation and Industrial Parks (CAIPs) to add value to their products before seeking markets.
The State Department for Industry is working to support small-scale and new manufacturers by providing spaces and manufacturing equipment. The sectoral forum on strategic investment and inclusive growth, organized by the Kenya Development Corporation (KDC), brings together over 1,000 delegates and exhibitors from the private sector, government, and development finance institutions. The aim is to facilitate matchmaking, sign pacts, and spotlight transformative investments across sectors such as manufacturing, healthcare, tourism, post-harvest management, digital innovation, and climate resilience.
KDC CEO Norah Ratemoh noted that the summit would unlock sector-specific discussions for key private investors and policymakers, aimed at driving inclusive economic growth and aligning them with the priorities of the Bottom-Up Economic Transformation Agenda (BETA). KDC Chairperson Sakwa Bunyasi emphasized the importance of channeling patient capital into strategic sectors, focusing on projects that yield high social impact and transformation at various levels.
KDC provides concessional financing to private sector players, particularly for MSMEs and high-potential value chains, while supporting climate-resilient industrialization. A $40 million livestock value chain project is being rolled out over five years, with the creation of a Green Fund underway to finance climate-aligned manufacturing and projects.
Centum Investment Company CEO, Dr James Mworia, highlighted the need for long-term private equity and venture capital to unlock business growth. He pointed out the need to absorb over 700,000 job seekers annually, far beyond the current 100,000 formal jobs created. Mworia warned against punitive tax policies, emphasizing that private investment, currently contributing just one percent to GDP, was below the global average of three percent. He called for concerted efforts to bridge the gap through equity rather than debt.
The decline in private investment in favor of government securities was flagged as a key risk to national economic stability, contributing to tax shortfalls, social shocks, and security vulnerabilities.