Economy
Kenya plans 30 industrial parks more in push for value-addition
Friday January 26 2024
Ministry of Investments, Trade and Industry Cabinet Secretary Rebecca Miano at a past event on December 13, 2023. PHOTO | BONFACE BOGITA | NMG
The government is seeking to build an additional 30 county aggregation and industrial parks for value addition to boost exports, even as it targets to double foreign direct investments to Sh1.6 billion this year.
Trade and Industrialisation Cabinet Secretary Rebecca Miano said the establishment of the aggregation hubs would boost value-addition across value chains and spur manufacturing productivity.
The government had initially targeted 18 County Aggregation and Industrial Parks whose construction has begun. The addition means some 48 industrial parks will now be built under the programme.
“This growth strategy includes the establishment of 30 additional County Aggregation and Industrial Parks, stimulating the activation of priority value chains across the country,” Ms Miano said.
The CAIPs are special zones being set up in all 47 counties by FY 2025/26.
The facilities will provide value-addition centres for agricultural products as well as storage facilities.
Read: KenGen reveals industrial park plans
The ministry targets to grow the contribution of Kenya’s manufacturing sector to the gross domestic product from 7.6 percent to 10 percent in 2024, with a long-term aim of 20 percent by 2030.
Ms Miano spoke during a meeting with heads of State corporations, agencies and departments within the ministry, where she laid down the strategic objectives for the current year and over the coming years.
“I would like to reiterate our ministry’s commitment to support the bottom-up economic transformation agenda and what we shall be presenting at the Cabinet retreat. Number one, we will be doubling exports to GDP from the current 10 percent, by 2027. Secondly is to double FDIs in 2024 from the current $800 million to $1.6 billion by the close of 2024,” she said.
Kenya Bureau of Standards managing director Esther Ngari said the agency continued to certify products small businesses produce, supporting their operations.
“Under operational efficiency. We achieved a remarkable 114 percent in certified products for micro, small and medium enterprises, helping them grow, and 59.2 percent increase of large firms which were certified reflecting successful operation efficiency enhancement,” she said.
At the same time, Industrialization Principal Secretary Juma Mukhwana said the ministry’s target was to wean as many agencies off exchequer support, by having them raise funds from operations.
“If you’re buying raw materials and then you make a product and you sell it in the market, why do you want us to give you money?” the PS posed.
Read: Special Economic Zones, EPZs face overhaul plan
The Ministry launched a strategy it said aims to foster an environment conducive to business expansion, technological progress, and the adoption of competitive manufacturing methodologies, to spearhead a comprehensive economic transformation.
