President Kenyatta said the Government is also engaging with regional trading partners in order to minimize the barriers that exporters face in their markets while at the same time boosting science, technology and innovation in the sector by increasing investment in research and development.
The President said development of a framework to nurture and commercialize inventions, innovations and end-products at the national and county levels has been stepped up, adding that Small and Micro Enterprises (SMEs) are being strengthened to become key industries by improving their productivity and innovation.
To further facilitate the export sector, President Kenyatta said industrial and manufacturing zones and SME Parks are being developed.
The Head of state observed that although Kenya has been registering a steady growth of exports over the years, the gains have been eroded by an upsurge in imports that outweigh the exports.
Said the President: “The country’s exports grew from 275 billion shillings in 2007 to 518 billion shillings in 2012, while imports increased from 605 billion shillings to 1.4 trillion shillings during the same period.”
Noting that a large portion of imports are consumer goods with little contribution to value creation and sustainable development, President Kenyatta said the widening trade deficit must be reversed through improved export performance and encouraging increased consumption of Kenyan goods.
To help SMEs diversify and move from commodities trade to high-end value added manufactured goods, the President said his Government intends to address the challenges facing the SMEs.
“Small and Micro Enterprises are among the best sources of new products and innovations,” the President said.
He said an Export Development Fund will be established to provide seed capital, adding that Credit Guarantee Schemes will be created to help reduce the high cost of credit to the business community.
President Kenyatta added that an endowment fund for sustainable funding of export promotion activities by the Export Promotion Council will also be established.
He underscored the importance of the export trade as a key sector of the country’s economy, saying it supports balance of payments, servicing of external debt, stable currency and sustenance of adequate foreign reserves.
“In addition, export trade contributes significantly to employment and wealth creation. Indeed, the sector is a key driver of our economy and is expected to complement the efforts of the Government in achieving the projected 10 percent annual economic growth rate as set out in Vision 2030,” the President said.
President Kenyatta called on African countries to trade more amongst themselves, saying the global export trade patterns are increasingly moving towards intra-regional trade.
Said the President: “In this regard, the African continent, which is still largely a virgin market, offers the surest opportunity for Kenya to improve trade, harness synergies and take full advantage of economies of scale to spur economic growth.”
Noting that the Export Promotion Council has taken initial steps to establish distribution infrastructure including warehouses, in targeted and prioritized markets, the President direct the process to be fast-tracked in order to enable the private sector to take full advantage of available business opportunities.
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