After a challenging 2017, the industrial sector has started to show signs of recovery and is expected to perform well in the coming years, as several government initiatives and programmes focus on boosting the manufacturing sector and its contribution to Kenya’s economy. Although official efforts are already under way, implementation of policies concerned with raising local output and lowering production…
The manufacturing sector is a key beneficiary of both Kenya’s 2018 budget and a new policy identifying medium-term economic growth drivers. Released by the Treasury on January 19, the draft 2018 budget policy statement (BPS) outlines plans to increase state support for developing manufacturing, while also setting targets for growth and employment across a range of industrial segments. Objectives…
So much has happened over the past decade in the African markets we cover: Ghana discovered oil, Nigeria re-based its economy, Kenya developed mobile money, Côte d’Ivoire recovered from a civil war, Egypt underwent a peaceful revolution, and Morocco created an aeronautics industry. State assets were privatised, dictators were ousted, and new cities were built. Of course, there have been plenty…
Interview: Chris Kirubi How would you characterise Kenya’s progress in reaching its targets outlined in Vision 2030? CHRISKIRUBI: Kenya is currently implementing the Vision 2030’s Second Medium Term Plan covering 2013-17. The government has put in concerted effort to ensure that we meet the targets set in its vision by putting in place measures that accelerate economic growth. Public sector…
As with most African markets, Kenya’s power sector is defined by a two-track approach, with an eye to boosting generation and improving access. The reasoning behind the latter is clear. Electrification rates in the country are low even by continental standards, and this is exacerbated by the modest urbanisation rate. As for the former, in contrast to much of the rest of the continent Kenya currently…
Interview: Phyllis Wakiaga What sort of regulatory reforms might help Kenya stimulate investment in manufacturing? PHYLLIS WAKIAGA: This year we had the pleasure of being recognised as the third most reformed country in the World Bank’s ease of doing business index for 2017. This showed that some of the steps we have made as a country have indeed helped in our efforts towards creating a nurturing…
Under the auspices of the overarching Vision 2030 economic development plan, industrialisation remains a top priority for the Kenyan government, with the sector recording steady growth in 2015 against a backdrop of falling energy and input prices, lending an optimistic outlook for 2017 and beyond. The food and beverage segment continues to dominate, leading growth in 2015 as a result of surging beverage…
Interview:Mugo Kibati What are the main challenges facing large-scale energy projects in Kenya? MUGO KIBATI: A typical challenge is bankability, as projects must be viable enough for equity investors, or else investors will not touch them. Energy projects are also very large and complex, both from the aspect of technical expertise as well as scale. Additionally, many projects are in far-flung…
The retail sector in Kenya is benefitting from rising middle-class purchasing power, robust macroeconomic growth and a surge of investment in high-end formal retail space, with a host of foreign retailers, brands and producers entering the market. Although well-entrenched local players remain dominant in the supermarket segment, the entrance of France’s Carrefour in 2016 marked an increase in competition…
Increasingly a mainstay of the manufacturing and retail industries, Kenya’s fast-moving consumer goods (FMCG) have shown considerable expansion in recent years, buoyed by a rising middle class, significant opportunities for regional expansion and local brand loyalty. Spending Power Rising According to a May 2016 report by US think tank the Brookings Institute, Kenya’s demographics are the single…