Manufacturing sector is an area where investment opportunities exist. Initially developed under the import substitution policy, there has now been a shift to export oriented manufacturing because the thrust of Kenya’s industrial policy. The sector performs an vital position in adding value to agricultural output and providing ahead and backward linkages, therefore accelerating total progress.
The manufacturing sector now comprises of more than 700 established enterprises and employs immediately over, 218,000 persons as on the yr 2000. A variety of alternatives for direct and joint-enterprise investments exist in the manufacturing sector, together with agro-processing, manufacture of garments, meeting of automotive components and electronics, plastics, paper, chemicals, pharmaceuticals, metal and engineering merchandise for both home and export markets.
Kenya has an integrated pulp paper mill plant producing paper and paper board from renewable forest products. Nonetheless, the country imports coated white lined chipboard and different boards for packaging, newsprint, printed paper and different kinds of paper. Funding alternatives exist in the manufacturing of paper from different raw supplies resembling bagasse, sisal waste, straw and waste paper.
Textiles and Apparels
Textile, Garment and Apparel manufacturing has a really excessive potential in Kenya. The basic uncooked materials inputs similar to dyes and chemicals are imported, as are all textile equipment and most spare parts. Investment alternatives exist beneath the Manufacturing Beneath Bond scheme and within the Export Processing zones for the manufacturing of gadgets comparable to yarn and garments.
Steel and Engineering Works
Kenya has a basic metal sector making a wide range of downstream products from native and imported steel scrap, steel billets and sizzling rolled coils. Kenya imports steel billets, coils, wire rod and wires, steel plates, sheets, steel scrap and pig iron. The nation possesses a broad-based mostly metal merchandise sector with varied independent engineering, foundry and metalwork workshops. Alternatives exist in the development of a nucleus foundry making precision castings which can be then processed into precision elements.
Automobile Elements and Assembly
The motor vehicle component business is rapidly creating to produce the needs of some motorcar assemblers to meet certain native content material necessities. Opportunities exist for manufacture of components to be used by native assemblers for domestic market and for export to regional markets.
Investment potential exists for the manufacturing of motors, circuit breakers, transformers, switch gears, irrigation pumps, capacitors, resistors, insulation tapes, electrical fittings and integrated circuit boards for each the domestic and export markets.
Although Kenya’s electronic trade is still at its infancy, plenty of corporations within the meeting, testing, repair and upkeep of electronic goods are in operation and are quickly growing their scope of activities to meet the rising calls for of the trade.
Key opportunities for direct investments, joint-ventures and subcontracting exist in meeting of a wide range of digital goods in Kenya, particularly inside the Manufacturing Beneath Bond scheme and Export Processing Zone Programmes.
These embody the manufacturing of:
Consumer electronics, resembling colour televisions, Video Cassette Recorders (VCRs), printers, floppy disk drives and Compact Disk Roms (CD-Rs);
Telecommunication tools, comparable to printed circuit boards, and transmission gear; and
Assist objects such as cables, cords, die casting and metallic plating.
With a labour pressure which is effectively-geared up to fulfill the labour skill necessities for the trade and the comparatively giant home and export market potential of electronics within the region, Kenya presents an infinite potential for the manufacturing and assembly of digital objects.
Plastics, Chemicals and Pharmaceuticals
The plastics trade in Kenya is nicely-developed and produces items product of polyvinyl chloride (PVC), polythylene, polystyrene, and polypropylene. All supplies are imported within the type of granules.
A lot of pharmaceutical formulations are produced domestically in the form of tablets, syrups, capsules, and injectables, but the majority of pharmaceuticals is imported. There is room for extra funding in the pharmaceutical business.
Many enticing funding alternatives in chemicals, pharmaceuticals and fertilizers remain unexploited. These embrace the production of PVC granules from ethyl alcohol; fomaldehyde from methanol; melanine and urea; mixing and granulating of fertilizers; cuprous oxychloride for espresso bean illness; caustic soda and chlorine primarily based products; carbon black; activated carbon; precipitated calcium carbonate; textile dyestuff; ink for ball-point pens; and gelatine capsules.
Mining and Mineral Products
Opportunities exist within the production of glass as the country isn’t self-sufficient. A few manufacturing units produce ceramic pottery and tiles, nevertheless, substantial portions of ceramic pottery, tiles, sanitary-ware, and insulators are imported. Investment potential exists in prospecting and mining of other minerals equivalent to gold, precious stones and petroleum.
Wooden and Wooden Merchandise
Making use of renewable assets, investment opportunities exist for production of high quality and hand carved furnishings for export, high density board from saw dust for the domestic market, high quality veneers, picket toys, sporting items comparable to cricket bats and rackets for export, and different specialty items. Recognizing the significance of environmental preservation, the government pursues an energetic re-afforestation programme.