It is time to promote Kenyan industries

Two months since its arrival in Kenya, the impact of the Covid-19 pandemic is still being felt across the nation.

The manufacturing sector has been one of the hardest hit sectors. Before the pandemic, the manufacturing sector accounted for hundreds of thousands of jobs.

The Kenya Association of Manufacturers (KAM) highlighted the disastrous effects of the pandemic on the sector in a recent report by a global accounting firm KPMG. This concluded that between 50 per cent-80 per cent of jobs in the sector could be lost.

Manufacturing was not always an integral part of economy.

Identified as one of the building blocks of the Kenyan economy, this sector was included in President Uhuru Kenyatta’s Big 4 agenda.

While the world has been losing its manufacturing to China, the government has been working to ensure that local firms remain in business. According to the Kenya Association of Manufacturers, 300 manufacturing firms set up shop in our country since 2013.

The success of manufacturing in our country did not take place in a vacuum but rather, was the product of good planning by the government.

Including manufacturing in the Big 4 agenda has increased its contribution to our GDP two-fold, from slightly over 9 per cent when the Big 4 agenda was published to 20 per cent.

This ambitious goal plan will not only contribute to the economy by adding jobs, but will also boost related sectors.

Keeping manufacturing at home, when production abroad is so much cheaper, is no easy task. Cost is not the only consideration.

Factory owners investing millions in infrastructure require assurances as to the security of their investments.

They need to know that they are building their businesses in a country that is safe, reliable and free from bureaucracy that will inhibit development.

These businessmen have found a home in Kenya, a place where the ease of doing business has improved year on year.

In this regard, our ranking in the World Bank's ‘Ease of Doing Business Index’ has significantly risen from 129th place.

Further tools used to draw in new companies have been appealing tax regimes as well as access to affordable sources of energy.

This is particularly appealing to sectors like manufacturing which are large scale consumers of energy.

Combining these two incentives into one, the government has offered a 30 per cent corporate tax power rebate.

This unique measure allows manufacturers to claim up to a 30 per cent tax rebate on their electricity costs.

The high cost of electricity has been the reason many manufacturers have given as to why locally produced products are less competitive on the international market.

We citizens also have a role to play in strengthening our manufacturing sector, and the economy.

It is the duty of all Kenyans to make sure that we purchase locally manufactured products.

The government has consistently repeated the mantra of “Buy Kenya, Build Kenya”.

Through buying locally, we benefit from high quality products. Other benefits include keeping our money circulating at home, creating jobs and even helping the environment by reducing the use of fossil fuels.

All of this will be important as our country recovers from the negative effects of Covid-19.