By Eddah Waithaka and Peace Muthoka.
In a move set to reshape Kenya’s manufacturing landscape, newly appointed Cabinet Secretary for Investments, Trade, and Industry, Salim Mvurya, has pledged to tackle the challenges that have stunted the sector’s growth over the last decade. Taking the reins from outgoing CS Rebecca Miano, Mvurya outlined a dynamic vision to restore Kenya’s manufacturing prowess during a high-profile handover ceremony on August 14, 2024.
Mvurya wasted no time in highlighting his agenda, promising to address the constraints that have hampered manufacturing in recent years. His strategy revolves around opening new markets for Kenyan products abroad while simultaneously empowering the private sector to exploit these opportunities to increase exports. “Kenya will continue to open new markets for local products abroad, and at the same time, facilitate the private sector to take advantage of these markets to increase exports,” Mvurya asserted, signaling a renewed focus on international trade.
A key element of Mvurya’s strategy is a paradigm shift towards Medium, Small, and Micro Industries (MSMI). He emphasized that these smaller enterprises are more practical for local entrepreneurs to run, and have the potential to significantly boost the economy if given the right support. “It’s time we refocus our efforts on MSMIs, which are more adaptable and manageable by the greater population of local entrepreneurs,” Mvurya explained, stressing the importance of grassroots industrial development.
The new CS also provided updates on the construction of 18 County Aggregation and Industrial Parks (CAIP), a project he described as critical to his ministry’s agenda. “My Ministry is committed to reaching the last mile of the value chain, which will guarantee the sustainability and success of the CAIPs,” he said. These parks are expected to play a crucial role in decentralizing manufacturing and bringing industrial development closer to the people.
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The handover event was attended by key figures within the ministry, including Principal Secretaries Dr. Juma Mukhwana (Industry), Abubakar Hassan (Investment), and Dr. Alfred K’Ombudo (Trade). Their presence underscored the significance of this transition and the collective effort needed to drive Mvurya’s ambitious plans forward.
Mvurya’s agenda aligns with President William Ruto’s broader vision for the country. In April, President Ruto outlined his government’s plan to roll out incentives aimed at attracting investors to the manufacturing sector. The President’s goal is to grow the sector to a robust 20% of the national GDP by 2030—a target that Mvurya is now tasked with helping to achieve.
Strategic investment in manufacturing, according to the President, is key to increasing exports, creating employment opportunities, and boosting economic activity using local resources. The Africa Continental Free Trade Area Agreement, which opens up a vast market for Kenya’s exports, offers a unique opportunity that Mvurya is keen to capitalize on. “We must take full advantage of the opportunities provided by the Africa Continental Free Trade Area Agreement,” Mvurya said, reinforcing his commitment to enhancing Kenya’s presence in regional and global markets.
Kenya’s manufacturing sector, while resilient, has faced numerous challenges in recent years. Dominated by subsidiaries of multinational corporations, the sector currently contributes just 7.6% to the country’s GDP. However, with Mvurya at the helm and a clear plan in place, there is renewed optimism that this figure can be significantly increased.
As Mvurya takes on this critical role, all eyes will be on his ability to deliver on his promises. His success will not only be measured by the growth of the manufacturing sector but also by the tangible benefits that reach the ordinary Kenyan entrepreneur and the broader economy. With bold plans and a clear vision, CS Mvurya is poised to steer Kenya’s manufacturing sector into a new era of growth and prosperity.
