NAIROBI, Kenya, Jan 9 – Kenya Association of Manufacturers are calling on policy reforms that will boost the industry performance in 2020.
The sector hopes to increase its production targeting to reach 15 percent contribution to the country’s GDP by 2020.
Speaking to Capital Business, KAM Chief Executive Officer Phyllis Wakiaga said the sector will thrive in 2020 should the business environment remain friendly.
“2020 promises to be a strong year for the sector, specifically if predictable and stable business environment can be guaranteed in policy formulation and implementation,” Wakiaga said.
Manufacturing is one of the country’s most valuable sector and it also expects to see more industries take up technology, especially e-commerce.
E-commerce is a large but untapped market that gives more market access at minimal costs.
It also expects the sector to grow through Africa Continental Free Trade Area which opens huge export opportunities for locally manufactured goods to the vast market.
In 2019, the CEO says the sector was greatly affected by issues as paying more for electricity, delayed payments, among others.
“Industry relies heavily on electricity for production and high-power costs increase the cost of doing business, also delayed payments have continued to hurt the industry, especially SMEs due to financial lock-in,” said KAM CEO Phyllis Wakiaga.
Some of the other challenges the sector hopes to beat this year include increase import of quality goods and flash out cheap and fake products, among others.
“The lack of adequate skills is hampering labor productivity; therefore, it is time that we developed and implemented industry-led skills policies that will ensure that human skills development connects effectively to labor market needs,” she added.
The area has so far succeeded in Government Procurement from local industries where Progress has been made in the Leather and footwear as well as textile and apparel sectors through
Other sectors set to benefit include the Automotive sector through procurement of locally assembled vehicles and Paper and Paperboard sector through procurement of locally produced paper and books.