Manufacturing Sector in Kenya

Betty Maina CEO, KAM 13th, 2011

Since 1959 50+ Years of Manufacturing Excellence!

What is Kenyan industry?

Contributor of 18% of GDP An employer of 2.3mln pple (in formal and informal sector. A supplier of Domestic and Export Market.
Major Markets is EAC (COMESA) and EU Uganda, UK, Tanzania, Netherlands, USA

Mostly Concentrated: Nairobi-Mavoko, Thika, Mombasa, Kisumu, Eldoret, Nakuru

Since 1959 50+ Years of Manufacturing Excellence!

Export Markets in 2007

Kenya's Merchandise Export Markets in 2007
1% 0% 17%

7%

46%

29%

Total Africa Total Asial

Since 1959

50+ Australia &Manufacturingof the world Years of Oceanic Rest Excellence!

Total Europe

Total America

EAC largest market in Africa

Kenya's Exports to AFrica (2007)

15%

22% 63%

Since EAC NON EAC Years of Manufacturing Excellence! 1959 50+ COMESA Other African Countries

Kenyas Merchandise Exports to EU and COMESA

Kenyan Exports to COMESA and EU (in ksh bns)

100 80 60 40 20 0 2001 2002 2003 2004 2005 2006 2007

Exports 50+ Years of Exports to total Excellence! to the EU Since 1959 Manufacturing COMESA

Major exports to COMESA 2000-08

HS Chapter 27 72 25 Chapter Description Share of exports to COMESA 24% 6% 5%

Mineral fuels and mineral oils Iron and steel Salt, sulphur, earths and stone

39
15 48 34 24 17

Plastics and articles thereof

Animal and vegetable fats and oils Paper and paperboard and articles Soap, organic surface-active agents, washing preparations, dental preparations Tobacco and manufactured tobacco Sugar and sugar confectionery

5%
4% 3% 3% 3% 2%

Since 1959

50+ Years of Manufacturing Excellence!

Major exports to EAC 2000-08

HS Chapter 27 25 39 72 48 30 87 34 73 15 Chapter description Mineral fuels and mineral oils Salt, sulphur, earths and stone Plastics and articles thereof Iron and steel Paper and paperboard and articles Pharmaceutical products Vehicles Soap, organic surface-active agents, washing preparations, dental preparations Articles of iron or steel, Animal and vegetable fats and oil Share of exports to EAC 31% 6% 6% 5% 4% 3% 3% 3% 3% 3%

Since 1959

50+ Years of Manufacturing Excellence!

Leading Industrial Sectors

Food & Beverage: Fish and Fish products, edible oils, coffee, tea, cereal milling (wheat, maize,) food processing, sugar and confectionery, fruit and vegetable processing, alcoholic beverages, tobacco and juice and water. Paper & Paper Board: pulp of wood, paper pulp recovered paper, printed books, newspapers, pictures and printing and allied Plastics & Rubber: Polythene bags & Sheeting, rigid plastics items Metal & Allied: Smelting/ Hot Rolling: Cold Rolling/ Galvanizing, foundries, pipe, tubes, wire and wire products.
KAM 1959-2009: 50 Years of Manufacturing

What bothers industry the most?

Cost of Production in Kenya High and not decreasing fast enough
Infrastructure, regulations, tax administration, burden of government etc Affects competitiveness of Kenyan products Affects investment decisions

illicit trade (counterfeits, substandard, or un-taxed goods

Since 1959 50+ Years of Manufacturing Excellence!

What bothers industry the most?

Cost of living high
Drives up wage costs Reduces consumer effective demand (shift of consumption to food products Drives inflation (food largest contributor to inflation movement

Since 1959

50+ Years of Manufacturing Excellence!

What bothers industry the most?

Inadequate government support for local produce e.g. procurement of local supplies Weak linkages with local supplies (e.g. Agriculture Inadequate/weak negotiation skills in regional trade agreements we give in on critical areas.
Since 1959 50+ Years of Manufacturing Excellence!

WE would like to ..
Increase employment in Kenya especially women and youth Increase consumption of Kenyan Good domestically and external Be industrial supplier of choice from Africa Spread business and industry across the country - reduce concentrations Building local clusters
Since 1959 50+ Years of Manufacturing Excellence!

The Kenya Association of Manufacturers

BASICS Established 1959 Members 700 Staff 36 Offices in: Nairobi, Kisumu, Mombasa, Eldoret, Nakuru (+ A. River and Thika) Funding: subscription, fees & projects
Since 1959 50+ Years of Manufacturing Excellence!

The Kenya Association of Manufacturers

Activities Policy Advocacy Business Services Networking and Coalitions
In Kenya In E. Africa and beyond (COMESA and Africa) (ESA BMO, ACTIF) Globally; on specific issues: Trade and Climate Change
Since 1959 50+ Years of Manufacturing Excellence!

Thank you

Since 1959

50+ Years of Manufacturing Excellence!