Industry & Retail
From The Report: Kenya 2016
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The ongoing push for industrial expansion, as highlighted by the government’s overarching Vision 2030 strategy, has resulted in a number of positive developments over the past year, particularly in the textiles, construction materials and food processing segments. Electricity availability and reliability have improved steadily over the past year as new renewable power plants have come on-line. SMEs contribute around 33% of value-added goods and create 80% of all new jobs, and their promotion ranks high on Vision 2030’s industrialisation agenda. As part of these efforts the government is increasingly moving to protect domestic industry, while regional and bilateral agreements have benefitted Kenyan exporters.

This chapter contains interviews with Adan Mohamed, Cabinet Secretary, Ministry of Industrialisation and Enterprise Development; and Darshan Chandaria, Group CEO, Chandaria Group of Companies.

Articles from this Chapter

Overview

Target for development: Despite challenges, the textiles, food processing and construction materials segments are seeing robust growth
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The ongoing push for industrial expansion, as highlighted by the government’s overarching Vision 2030 strategy, has witnessed a number of positive developments over the past year, particularly in the textiles, construction materials and food processing segments. Electricity availability and reliability have improved steadily over the past year as new renewable power plants have come on-line, while a spate of planned construction initiatives, including the Standard Gauge Railway (SGR) and Lamu Port-South…

Interview

In the zone: OBG talks to Adan Mohamed, Cabinet Secretary, Ministry of Industrialisation and Enterprise Development
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Interview:Adan Mohamed What steps are currently being taken to encourage a shift towards value addition? ADAN MOHAMED: Despite its potential, the industrial sector has not been dynamic enough to function as an engine of growth for the Kenyan economy, as has been the case in many other newly emerging economies. Kenya has thus embarked on an industrial transformation programme, which is the first ever strategic, comprehensive and integrated industrial plan that will support growth in certain…

Analysis

Increasingly competitive: New entrants have entered the cement sector while existing players are expanding capacity
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Bolstered by a spate of planned infrastructure projects and strong construction industry expansion, Kenya’s cement sector is expected to record a positive performance in 2015, with excess supply gradually being absorbed by rising domestic and regional consumption. The sector faces a number of challenges, however, and an influx of new players entering the market will increase competition and put further pressure on already slim margins. A Mature Industry Kenya’s mature and well-established cement…

Overview

Bright outlook: Improving economic conditions and changing consumer preferences point to strong years ahead for retail
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Buoyed by years of robust GDP growth, a rising middle class, increased purchasing power and shifting consumer habits that have helped to drive the development of new shopping malls and e-commerce activities, Kenya’s retail market is poised for considerable expansion in the coming years. Although informal spaces and local chains remain the dominant market forces, a rising number of high-end shopping centres and international chains demonstrate the considerable potential for foreign investment in…

Interview

Powering up: OBG talks to Darshan Chandaria, Group CEO, Chandaria Group of Companies
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Interview: Darshan Chandaria How would you rate Kenya’s manufacturing sector in terms of global and regional competitiveness? DARSHAN CHANDARIA: Kenya can be regarded as the central country of the EAC and it has lived up to this expectation. It continues to be the driving engine of the region’s growth. The recent focus on developing fundamental infrastructure has been very positive and the growth of the manufacturing sector has unquestionably been the backbone of the economy. Regionally and…

Analysis

Moving fast: The consumer goods segment is expanding thanks to a surge in demand
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Kenya’s rapidly expanding fast-moving consumer goods (FMCG) segment has been a major driver of industrial growth, benefiting from the particularly strong demand for food and beverages (F&B) and personal care products. This has led a number of international firms to enter the market or increase existing investments in recent years, most notably US firms including the Wrigley Company, PepsiCo and Coca-Cola. Although changes in the tax regime, ongoing currency depreciation and an increasingly…