Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
/ABU MBURU

Kenya

Kenya ranks at 115 out of 152 in the Competitive Index Report

NAIROBI, Kenya, Sept 2 – Kenya has ranked position 115 out of 152 in the Competitive Industrial Performance (CIP) Index Report, 2020.  

This rank puts the country lower than other competitor African countries but high compared to its East African counterparts. Egypt and South Africa rank at position 64 and 52 respectively whereas Tanzania is 123 and Uganda is position 128.   

The Report benchmarks the ability of countries to produce and export manufactured goods competitively. It provides a yardstick against which Kenya can compare its manufacturing competitiveness on a global level.  

It further indicates that China, which is ranked second in the CIP Index report, is very strong in manufacturing due to the use of high technology which is applied by 30.6 percent of its manufacturers whereas only 9.3 percent are resource-based manufacturers.   

Comparatively, Kenya’s manufacturing sector export structure is dependent on resource-based manufacturers at 42.9 percent with high tech manufactures only accounting to 5.5 percent.  

Speaking at the virtual launch of the CIP Report, Principal Secretary Ministry of Industrialization, Dr. Francis Owino highlighted the importance of driving the competitiveness of the manufacturing sector, noting the need to improve our overall performance to boost trade and investment.   

This report shows Kenya is at position 115 out of 152. This is far from our expectations and calls for urgent need to collaborate to achieve faster growth in the sector. We will continue to collaborate with various stakeholders to achieve targets in the policy making formula to get Kenya in the global competitiveness map,” said Dr Owino.  

Also, at the launch, Principal Secretary for National Treasury, Dr Julius Muia noted, “competitiveness is very key to our industrialization. With robust industrialization, we can create employment for our people, get more taxes and provide more tax incentives and waivers. Quantifying the competitiveness of the manufacturing sector provides an evidence-based basis to which we can make policies.”  

Kenya Association of Manufacturers (KAM) Chairman, Mucai Kunyiha highlighted that Kenya’s competitive performance needs to be improved to spur productivity, growth and development. He further noted that though Kenya continues to progress in the Ease of doing Business Index, there is need to look into our ability to sustainably produce goods and services.  

Advertisement. Scroll to continue reading.

Ease of Doing Business is a ‘necessary but not sufficient’ condition to improve growth and prosperity. We must also look at our ability to produce goods for which there is a market at a price and quality that their market is willing to pay for. Whilst Kenya ranks top position within EAC countries in this CIP Index, a lot still needs to be done in order to be competitive at a global scale,” added Mucai.  

Kawira Bucyana, United Nations Industrial Development Organization (UNIDO) representative to Kenya concluded the virtual launch by stating, UNIDO is cognisant of the importance of a competitive manufacturing sector to facilitate trade. By promoting competitive we can prioritize economic resources for greater prosperity. We reaffirm that we will continue to support all stakeholders to improve Kenyans industrial performance and hope to see improvement of Kenya’s ranking in the next 2 years.”  

The Competitive Industrial Performance (CIP) Index – Kenya Report is a UNIDO publication launched this morning in partnership with KAM. 

2 Comments
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...