By Mimi Mavuti
Africa Industrialisation Day, marked on 20 November under the theme Sustainable Industrialisation, Regional Integration and Innovation, offers Kenya a timely moment to reflect on how deliberate and sustainable practices can catalyse long-term industrial growth. Kenya is now at an inflection point where sustainable industrialisation is no longer a lofty ambition — it is the surest pathway to safeguarding and enhancing our global competitiveness.
Sustainable energy infrastructure remains a core pillar of this ambition. According to the Energy and Petroleum Statistics Report for the Financial Year Ended 30 June 2025 by the Energy and Petroleum Regulation Authority (EPRA), renewable energy accounted for 80.17% of all power generated during the period. Geothermal contributed 39.51%, hydropower 24.21%, wind 13.18%, while utility-scale solar made up 3.27%. Building on this strong foundation, the government has set a bold target: generating 100% renewable power by 2030.
Complementing this is the manufacturing sector — a major energy consumer and an engine of industrial growth through trade facilitation. Despite its strong potential, manufacturing’s contribution to GDP declined from 11.3% in 2010 to 7.3% in 2024, according to the Kenya Association of Manufacturers (KAM). Only a stable, predictable, and innovation-friendly regulatory environment can unlock its full potential and shield it from the rising threat of illicit trade.
For Kenya’s private sector to thrive, systemic barriers that impede sustainable energy access must be tackled. These include infrastructure deficits, limited access to industrial financing, and cumbersome regulatory processes.
On a wider scale, regional integration through the African Continental Free Trade Area (AfCFTA) raises the stakes for competitiveness. A unified continental market enables specialisation, supports economies of scale, and positions Kenyan manufacturers to seize opportunities that would be out of reach in a fragmented landscape. Kenya’s diversified economy and renewable energy advantages make it an ideal production hub for firms seeking stability and continental reach.
This potential is strengthened by parallel investments in renewable energy and in Science, Technology, Engineering and Mathematics (STEM). A key example is the KOICA–GIZ TVET Project, a partnership between the Ministry of Education, the Korea International Cooperation Agency, and GIZ, which equips Kenyan youth with skills in manufacturing, renewable energy and other future-focused fields. Such initiatives are vital in building inclusive technical capacity and ensuring value addition is efficient and locally anchored.
Equally essential is a predictable fiscal and regulatory environment. Illicit trade — from illegal tax-evaded cigarettes, which account for approximately 37% of the tobacco market, to counterfeits in alcohol, cosmetics and electronics — poses an existential threat to legitimate industry. Addressing this crisis requires a whole-of-society effort to protect businesses, supply chains and livelihoods.
Innovation must also sit at the heart of sustainable industrialisation. Leveraging science and modern technology in product design and development ensures businesses remain responsive to evolving consumer needs. Regulatory frameworks must keep pace with — and ideally anticipate — the rapidly shifting marketplace through proactive engagement with industry.
To realise Vision 2030, Kenya must treat industrialisation as a national priority, anchored on renewable energy, skilled talent and a collective commitment to safeguarding legitimate industry. Services alone cannot deliver the scale of growth or broad-based employment Kenya aspires to. Manufacturing creates well-paying formal jobs, builds transferable technical expertise and establishes production capabilities that strengthen economic resilience over time.
As Africa Industrialisation Day underscores the central role of sustainable industrialisation in driving economic transformation, the message is clear: the time to accelerate Kenya’s industrial journey is now. A decisive, sustained and inclusive push will help secure long-term prosperity for the country.
The writer is the Head of Business Communication and Sustainability, BAT Sub-Saharan Africa Area.
