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KEPSA
7th Floor, South Tower, Two Rivers, Limuru Rd, Nairobi.
info@kepsa.or.ke
KEPSA participated in the launch of the manufacturing priority agenda (MPA) 2023 on 28th February 2023 at Radisson Blu Hotel, Upper Hill, organized by the Kenya Association of Manufactures (KAM). The theme of the KAM Manufacturing Priority Agenda 2023 was Resetting Manufacturing to Achieve Agenda 20BY30.
Present at the launch were: Kenya Association of Manufacturers (KAM) Chief Executive, Mr. Antony Mwangi, KAM Head of Policy Research and Advocacy Mr. Job Wanjohi, KAM board chair Mr. Rajan Shah, Mr. Hezekiah Okeyo, Industrialization Secretary- State Department for Industrialization, Mr. Alex Washira -PS State department of energy and Mr. Abubakar Hassan Abubakar -PS State Department for Investment Promotion among other guests and KAM members.
Kenya Association of Manufactures (KAM) Chief Executive, Mr. Antony Mwangi, indicated that the launch of the manufacturing priority agenda (MPA) 2023 provides an opportunity for the Kenyan economy to grow multiple folds. He highlighted that KAM as an organization constitutes 14 sectors, and 54 subsectors with 1300 members and that KAM has spread its networks across the country in the chapter. He also noted that the Manufacturing Priority Agenda (MPA) 2023 provides an opportunity for the manufacturing sector. Mr. Mwangi emphasized that KAM adopted Kenya Manufacturing Agenda 20 by 30 which will enable the manufacturing sector contribution to Kenya's GDP to rise from 7.2% to 20% in 2030. To achieve the adopted agenda, KAM organized itself into 4 pillars namely: Global CompetitivenessExport growth (About 4000 manufacturers in Kenya), Industrialize Agriculture, and SME Development. Mr. Mwangi revealed that to unlock value chains, KAM initiated Automotive Industry which makes it possible to create 1.4 million new jobs, the Textile and Apparel Industry (Only exporting 500 bn), and the Pharmaceuticals Industry Opportunity.
KAM Head of Policy Research and Advocacy Mr. Job Wanjohi stated that Manufacturing Priority Agenda (MPA) 2023 is summarized by four pillars: Global Competitiveness, Export growth (About 4000 manufacturers in Kenya), Industrialize Agriculture, and SME Development. Mr.Wanjohi revealed that Kenya Manufacturing Agenda 20 by 30 will enable manufacturing contribution to GDP from 7.2% to 20% in 2030 and is envisioned to create 1 billion jobs from 336,800 jobs from the 2022 economic survey. Reviewing MPA 2022, Mr. Wanjohi indicated that EAC CET adopted in the region through KAM’s advocacy was among its key wins. He highlighted that from MPA 2023: Global growth is forecasted to average 2.7% in 2023 and improve to 3.2% in 2024, KAM estimated the GDP growth by 5.1% in 2023 and finally, Manufacturing GDP for Kenya declined from 11.16% (588Bn) in 2011 to 7.24% in 2021.
KAM board chair Mr. Rajan Shah stated that Industrialization is a key to development as manufacturing declined its contribution to Kenyan GDP from 11.1% in 2011 to 7.24% in 2021. He indicated that a robust manufacturing sector will support sustainable manufacturing growth also high and persistent inflation rate is a red flag that there is an underlined economic problem and should be addressed. Mr. Rajan pointed out that challenges such as illicit trade have hindered KAM from excessing international growth as well as low-value addition has denied Kenyans jobs and wealth. He emphasized the state department of agriculture to have a manufacturing desk and that products should be exported after value addition here in Kenya.
Mr. Hezekiah Okeyo, Industrialization Secretary, State Department for Industrialization said that the government agrees with the manufacturing priority agenda (MPA) 2023 on raising manufacturing GDP contribution to Kenya's economy to 15% is possible, budget policy statement 2023 on economic transformation; Kenya's developing within four global threats; geopolitics, pandemic, climate change and the digital revolution which affect manufacturing value chain, Tax reforms and that the government will do agricultural industrialization as well focus on SMEs economy.
Mr. Alex Washira, PS State department of energy indicated that promoting market access by eliminating NTBs and illicit trade, enhancing domestic market access, and training Kenyans to know international requirements for exporting their products are the key roles of the government. Mr. Washira emphasized that the government is ready to work with the private sector to boost the manufacturing sector.
Mr. Abubakar Hassan Abubakar, PS State Department for Investment Promotion, opened his remarks by stating that the KAM theme was in line with the Kenya Kwanza government manifesto and that manufacturing is the highest creator of jobs in the Kenyan economy. He revealed that the government had recently initiated a national program in each county with a seed capital of Kes 1 million, he also noted that the KAM agenda forms the basis of public-private dialogue. Mr. Abubakar assured that the government is ready to engage the private sector for the goodness of Kenya and that the manufacturing priority agenda (MPA) 2023 four pillars (Global Competitiveness, Export growth, Industrialize Agriculture, and SME Development) which is closely related to Kenya Kwanza government five plans(Agriculture, Micro, Small and Medium Enterprise (MSME) economy, Housing and Settlement, Healthcare and Digital Superhighway and Creative Economy). He revealed that the government is very keen to improve the global competitiveness of the manufacturing sector as well as the state department for Investment Promotion plans to raise $10000Bn for the manufacturing sector. The PS revealed that his department is strategized to industrialized agriculture and great job to 8 million farmers as well as to raise Foreign Domestic Investment (FDI) from $ 500 billion to $ 10000 billion.