NAIROBI, Kenya, Oct 19 – Kenyan Manufacturers have unveiled a roadmap to increase the sector’s contribution on gross domestic product (GDP) to20 per cent by 2030.
The initiative, dubbed ‘Kenya Manufacturing 20by30’, seeks to maximize on opportunities available to spur local industry’s growth.
The summit was held amidst concerns on the declining contribution of the sector to the GDP, which has decreased from 9.3 per cent in 2016 to 7.2 per cent in 2021, according to KNBS.
Despite this, manufacturing contributes about 17.30 per cent of total tax revenue, implying that tax revenue from the sector can triple if 20 per cent% GDP contribution is achieved by 2030.
“It is possible for us to create a million jobs from the manufacturing sector. Additionally, we have the potential to move the contribution of GDP from 7 per cent to 20 per cent in 8 years,”
“We shall achieve this through continuous engagement, consultation, sharing of ideas and moving together as a nation,” President William Samoei Ruto said.
He added that “We can build a whole eco-system that will aggregate Kenya’s production since we have put in place initiatives to create an enabling business environment, for instance, policies, and infrastructure. Furthermore, we can leverage natural resources such as clean energy to bring down the cost of power.”
“There are huge opportunities in value addition. We have the biggest competitive advantage in the tea sector. By processing our tea, we can increase revenues through export. Additionally, we can increase our revenues and the contribution of leather to our GDP from the current 15 billion to 75 billion Kshs annually,” explained His Excellency the President.
Out of 19 million people under the Kenya workforce, only about 3 million people (15 per cent) are employed in formal jobs in both public and private sectors. The other 16 million (85 per cent) work in both formal and informal micro, small and medium enterprises (MSMEs).
In line with this, KAM Chairman Rajan Shah reiterated that, “Herein lies the golden opportunity for the country to grow SMEs to the next level. Your commitment towards growing this sector of the economy is indeed timely and promises to unlock the potential for small businesses if implemented in the short and medium term.”
The event was held during the SME Innovation Awards. The Awards sought to celebrate Manufacturing SMEs who have put in place business innovation and growth strategies, following a 10-month capacity-building programme conducted in partnership with GIZ Promotion of Self-Employment and Entrepreneurship in Kenya.
