Page 26 - Engineering in Kenya Mag

Kenya’s economic recovery lies in thriving manufacturing sector
AT a time when global economic stability has been greatly shaken by a raging pandemic, Kenya’s economy looks up to
industrial resilience, innovation and engineering to stage a comeback.
The middle-income economy has taken its fare share of the hit following Covid-19, braving rising costs of production and industrial lay-offs all through 2020, right into 2021.
A resilient manufacturing sector has kept the wheels of the economy rolling amidst great economic distress. And now, in 2021, the manufacturing industry in Kenya has its eyes set firmly on one thing: thriving.
According to the Kenya Association of Manufacturers (KAM), the national umbrella-body representing value- add companies and associated serviceproviders,theonlywayforward for Kenya’s economic recovery lies in manufacturing sector rebound for sustained job and investment growth.
“Covid-19 has had an impact on all
sectors and the manufacturing sector has not been spared. Last year, we conducted a survey in partnership with KPMG.
From the survey, the pandemic led to reduced output and consumption, attributed to reduced working hours, difficulties in sourcing for raw materials due to supply chain disruptions and cash flow constraints,” says Phyllis Wakiaga, the KAM Chief Executive Officer.
“78% of manufacturers had to swiftly shift their focus from increasing profitability, revenue and domestic market share pre-Covid to currently reducing costs, retaining jobs, and improving cash flow.”
Ms Wakiaga says manufacturers are now solely focused on building resilience and sustainability of the sector to prevent the industry from suffering further shocks brought about by crises such as Covid-19.
As part of its recovery plan, KAM has developed a Manufacturing Priority
Agenda (MPA) for 2021 themed, ‘From surviving COVID-19 to thriving: Manufacturing sector rebound for sustained job and investment growth’.
The MPA has five pillars, including competitiveness and level playing field for manufacturers in Kenya; enhance market access; pro-industry policy and institutional framework; SME’s development; and industrial sustainability and resilience.
“The Agenda also outlines the need to enhance market access. Promoting the consumption of locally manufactured goods will forestall the overdependence of the Kenyan economy on imported goods,” says Ms Wakiaga.
With globalisation, she adds, competition has become even stiffer and local manufacturers must be prepared to battle it out with formidable competitors such as china, India, Egypt and South Africa.
“Improving regulatory efficiency, promoting access to quality, affordable
Inside a manufacturing plant at Tononoka Group. The manufacturing industry in Kenya makes a huge contribution to the national GDP. (INSET): KAM CEO Phyllis Wakiaga.
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Engineering in Kenya Magazine Issue 002