Government seeks to build 30 additional industrial parks
Cabinet Secretary for the Ministry of Investment, Trade and Industry, Rebecca Miano, with Principal Secretary in the State Department of Industrialisation, Juma Mukhwana, during a meeting with chief executives from state corporations, agencies, and departments in the ministry.
The government is seeking to build an additional 30 county aggregation and industrial parks for value addition to boost exports, even as it targets to double Foreign Direct Investments (FDIs) to Sh1.6 billion this year.
Trade and Industrialisation Cabinet Secretary Rebecca Miano has said establishment of the aggregation hubs across the country would boost value addition for businesses across value chains and boost manufacturing productivity in the country.
The government had initially targeted to build 18 County Aggregation and Industrial Parks (CAIPs) whose construction has begun. The addition means some 48 industrial parks will now be built under the programme.
“This growth strategy includes the establishment of 30 additional County Aggregation and Industrial Parks, thereby stimulating the activation of priority value chains across the country,” Ms Miano said.
The CAIPs are special zones being set up by the government with the aim of having the project implemented in all 47 counties by FY 2025/26.
Strategic objectives
The facilities will provide value addition centres for agricultural products as well as storage facilities.
The ministry targets to grow the contribution of Kenya’s manufacturing sector to GDP from 7.6 per cent to 10 per cent in 2024, with a long-term aim of 20 per cent by 2030.
Miano spoke during a meeting that brought together heads of several state corporations, agencies and departments within the ministry, where she laid down the ministry’s strategic objectives for the current year and over the coming years.
“I would like to reiterate our ministry’s commitment in support of the bottom-up economic transformation agenda and what we shall be presenting at the Cabinet Retreat. We will be doubling exports to GDP from the current 10 per cent, by 2027. We also intend to double FDIs from the current $800 million to $1.6 billion by the close of the year,” Miano said.
Economic transformation
Kenya Bureau of Standards (Kebs) Managing Director Esther Ngari said the agency has continuously certified products from small businesses in the country thereby supporting their operations.
“Under operational efficiency. We achieved a remarkable 114 per cent in certified products for Micro, Small and Medium Enterprises (MSMEs) which helped them grow, and 59.2 per cent increase of large firms which were certified reflecting successful operation efficiency enhancement,” Ms Ngari said.
At the same time, Industrialisation Principal Secretary Juma Mukhwana said the ministry plans to wean as many agencies off exchequer support, by having them raise funds from operations.
“If you're buying raw materials and then you make a product and you sell in the market, why do you want us to give you money?” the PS posed.
The ministry has also launched a strategy that will foster a conducive environment for business expansion, technological progress, and the adoption of competitive manufacturing methodologies, to spearhead a comprehensive economic transformation.
