Page 27 - Engineering in Kenya Mag

and reliable energy, reducing transport and logistics cost, and enhancing cash flow for manufacturers will drive our competitiveness,” says Ms Wakiaga.
“KAM is constantly engaging the government on policy measures to cushion businesses in the country to ensure their continuity. At present, we urge the government to concentrate its efforts on vaccinating as many people in the shortest time possible, as the economy cannot stand to be closed for a long time.”
Current technological developments have created the new automated age, with developments in robotics, artificial intelligence and machine learning starting to deploy on industrial scale. But are manufacturers in Kenya ready for these developments?
“Local industries are ready for these developments; however, uptake has been slow,” says Wakiaga.
The KAM, in partnership with the Overseas Development Institute (ODI), developed a 10-point policy framework in 2018, underpinning the gaps that need to be filled to ensure the local industry capitalises on digital technologies.
Before Covid-19, the world was positioning itself for the fourth Industrial Revolution, known commonly as Industry 4.0. According to the manufacturers association, digitisation of the manufacturing sector has ensured factories now maximise on their operational excellence through the use of technology for enhanced maintenance, such as real- time monitoring of machinery.
“The 10-point plan addresses issues related to building digital infrastructure, including through increasing access to digital services and updating policies on data; boosting the competitiveness of Kenyan manufacturing in an increasingly digitalised economy; and managing the digital change in an inclusive and sustainable manner,” says Wakiaga, decrying the lack of policy guidelines in industrial digitisation.
She says appropriate policies need to be developed to ensure Kenya is
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.
able to maximise productivity gains from industrial digitisation, so as to be able to realise large-scale employment gains.
“Today, engineering and technology
has greatly impacted safe and
efficient planning, management and
multiplication and improving systems to enhance speed of service delivery.
The World Economic Forum (WEF) has defined five trends in the future of manufacturing: virtual simulation, 3D printing, automation, cloud computing and human managed robotics, trends that are set to impact the engineering sector unprecedentedly. Just how is the manufacturing sector in Kenya going to ensure members and engineers in their service are up to speed with the future?
“The Association acknowledges the need for local industries to take up industry 4.0 in order to stay ahead of competitors,” says Wakiaga.
“To this end, we continue to engage the government and like-minded organisations for development of policies that encourage and incentivise local industries to take up digitisation in their processes.”
KAM has been at the forefront of fostering industrial collaboration between players in manufacturing
THE IMPACT OF COVID-19 ON THE MANUFACTURING SECTOR IN KENYA
maintenance of production methods and processes, which are crucial for a sustainable and competitive manufacturing sector,” she says.
Changing focus
Through engineering and and the engineering space in Kenya.
technology, Kenya has seen “Manufacturing and engineering are
advancements in manufacturing,
interlinked. The manufacturing sector
including research and development
engages various engineers to support
Manufacturers have had to rapidly change focus.
Metal & Allied Sector. The major focus of 78% of
The top three priorities for the majority of
the respondents is to now look at all avenues of
that have further enhanced
its processes, including mechanical,
businesses before Covid-19 were to increase profitability, increase revenue and increase
cutting costs. Manufacturers are also switching
manufacturing processes, including
to survival mode and looking to maintain the
domestic market share. These strategies have automnaowtiobene,n pushaenddown tcheoangseendqauaendnatrley
status quo, downsizing or even contemplating amshounttigngmdoawnnyasoutnhcertsai.ntyThloeomAssfosrothceiation
overtaken by reducing costs, retaining jobs, and
foreseeable future.
enhanced efficiency along supply
fosters collaboration between players
in the engineering space directly
through their role in the manufacturing
improving cash flow. However, when faced with the dilemma of reducing costs or retaining jobs,
chains and product development.
the former usually takes precedent and
Engineering and technology
downsizing considerations seem more of a reality.
sector processes, more so, in research
have also promoted sustainability
We have a moral obligation to ensure that at this particular time we won’t
through advancements in energy,
and development, key in enhancing
In spite of the rising costs, most manufacturers
have not been able to adjust their prices wateracaconrdinglwy.a“Wstehavme anmaorgaleombliegantiton atos
take advantage of the situation but be
ensure that at this particular time we won’t take
pro–cBeosbsbeys,J”oshanyssonW, aCkhiaigra-.Metal &
well as productivity, which helps
advantage of the situation but be very supportive indusotrfyoupr croudnutrcy,eKevnaylau.”e– tBhoabbtyrJeolhantseosn, tCohair -
Allied Sector
industrial, electrical and maintenance
the efficiency of manufacturing
very supportive of our country, Kenya.”
Manufacturers in Kenya, through
Figure 1: Strategic priorities before and during Covid-19
Cost reduction Retain jobs Improve cash flow Downsize Increase online capabilities Maintain status quo Develop new domestic markets Product diversification New product development Increase market share (domestic) Develop new export markets Increase advertising/ marketing Increase revenue Increase profitability Increase or decrease SKUs Increase market share (export) Shut down
Source: KPMG and KAM, 2020
60% 70%
80% 90%
0% 10%
During Covid-19
20% 30% 40% 50% Before Covid-19
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Engineering in Kenya Magazine Issue 002
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