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Slight slow-down in Kenya's manufacturing sector to 3.5% in 2016
Manufacturing sector grew by 3.5 per cent in 2016, compared to a revised 3.6 per cent the previous year. The sector experienced a slowdown in credit by 4.6 per cent but managed to increase volume output by cost effective measures.
Fri, 21 Apr 2017 14:39:51 GMT
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AI Generated Summary
- The manufacturing sector in Kenya grew by 3.5 percent in 2016, facing a slight slowdown in credit but managed to increase volume output through cost-effective measures.
- Manufacturing contributes about 10 to 11 percent of GDP in Kenya, a figure that needs to be increased to 15 to 18 percent for the country to truly industrialize.
- Challenges faced by Kenyan manufacturers include high costs of doing business, competition from international hubs, and the need to improve quality while maintaining competitive prices.
Kenya's manufacturing sector saw a modest growth of 3.5 percent in 2016, a slight dip from the previous year's 3.6 percent. Despite the slight slowdown in credit by 4.6 percent, the sector managed to increase its volume output through cost-effective measures. The sector is crucial to the Kenyan economy, contributing about 10 to 11 percent of GDP for the last decade. However, for the country to truly industrialize, industry experts believe that this percentage needs to be increased to around 15 to 18 percent. Raj Bains, the Managing Director of Kim-Fay Limited, highlighted the challenges faced by manufacturers in Kenya and emphasized the need to address key areas to propel the sector forward. One of the major obstacles mentioned was the high cost of doing business. This includes inefficient transport networks, high energy costs, and competition from international manufacturing hubs such as China, Vietnam, and India.
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