(NAIROBI, KENYA) – Kenya’s manufacturing sector remains stuck at about 8% of gross domestic product, well short of the government’s target of 15% by 2027 and 20% by 2030, as infrastructure gaps, low technology adoption and weak links between industry and research hold back growth.
The government is now seeking to turn these constraints into investment opportunities ahead of the Kenya Industrialisation Summit 2026, to be held in Nairobi from 2nd to 7th November.
Industry Principal Secretary Juma Mukhwana said the government was working to address the barriers holding back the sector while improving the competitiveness of locally manufactured goods.
“Despite our efforts, manufacturing still contributes approximately 8% of GDP, against our national target of 15% by 2027 and 20% by 2030,” Mr Mukhwana said.
“We are faced with challenges of infrastructure gaps, low technology uptake and weak industry-research linkages. At the same time, we have huge opportunities.”
These opportunities include Kenya’s young population and access to the African Continental Free Trade Area (AfCFTA), which covers a market of about 1.4 billion people.
The government is targeting investment in agro-processing, textiles and apparel, building materials, pharmaceuticals and automotive manufacturing, sectors seen as critical to value addition, job creation and expanded local supply chains.
Kenya’s industrialisation agenda is anchored on Vision 2030, the Bottom-Up Economic Transformation Agenda and AfCFTA, with the State Department for Industry seeking to attract investors, strengthen micro, small and medium industries and improve the competitiveness of Kenyan products.
The Nairobi summit will be held under the theme “Driving Industrial Growth through Investment, Manufacturing, Trade, Innovation and Sustainable Financing”.
“This conference is to convert those challenges into investable opportunities,” Mr Mukhwana said.
More than 2,000 participants, including government officials, manufacturers, investors, development partners and researchers, are expected to attend the six-day event.
The government expects the summit to produce policy recommendations to strengthen the competitiveness of Kenyan products, investment commitments for industrial projects and stronger links between government, industry, academia and development partners.
It also aims to raise the visibility of Made-in-Kenya products and expand the participation of women, young people and persons with disabilities in industrial value chains.
According to the Kenya Association of Manufacturers, raising the sector’s GDP share from 8% to 15% by 2027 will require faster industrial output, lower production costs, improved access to capital and technology, and policies that allow local firms to compete effectively against imports.
High electricity costs, taxation and overall costly production continue to be blamed for making Kenyan products uncompetitive, with cheaper imports taking market share from local producers.
Industry players say a stronger manufacturing sector offers a path to job creation, export growth and reduced dependence on imported finished products.