When Mucai Kunyiha Chair, Kenya Association of Manufacturers (KAM) was speaking on women’s representation in the manufacturing sector, he noted an important factor in the growth of the sector.
“When we think of successful manufacturing companies, we probably think of industries that have optimized their efficiency, development of quality products, and focused on service delivery. Whilst this is true, it is also worth noting the role of inclusivity and diversity in these businesses. The participation of women is critical in driving industrial growth.” He said.
Any conversations around increasing our competitiveness as a country without looking at women’s involvement are echoes in a hollow chamber. This is no longer a ‘good conversation to have’; it is an urgent measure that needs to be taken.
In a recently released report by the KAM, dubbed ‘Women in Manufacturing Mainstreaming Gender and Inclusion’, while women make up over 55% of the global labour force, they only make up only 22% of the manufacturing labour force.
The study also noted that current global trends aim to increase women’s participation in the workforce for increased innovation, creativity, and inclusion.
Manufacturing stakeholders in Kenya are increasingly becoming aware of the value of women’s inclusion and full participation in the sector for increased sustainability and return on investment (ROI).
Some 84% of Kenya’s workforce is engaged in the informal economy, with 93% of women-owned businesses in this category. Micro- small- and medium enterprises (MSMEs) employ 15 million Kenyans and contribute 29% of GDP.
Kenya is currently ranked 109 out of 153 countries in the Global Gender Gap Index (GGGI) 2020 and 20 out of 34 African countries.
Kenya’s ranking on economic participation and opportunity for women stands at 114 out of 153 countries with a score of 0.6 out of 1 on gender parity. Women’s labour force participation (64%) in 2020 is less than men (70%). Women earn less than men for similar work with Kenya with a score of 0.7 out of 1.
According to a report by WageIndicatot dubbed An Overview of Women’s
Work and Employment in South Africa , since the late 1990s, much manufacturing work have been outsourced and casualised, and manufacturing has become a less promising source of employment for women. The official figures indicate that still one-third of manfacturing employment is female. However in Nigeria, a recent analysis by researchgate, in the manufacturing, utilities and construction industry the total female employment growth was at an average of 3.3 % per annum, somewhat below the overall average employment growth rate of 3.4%
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Female majority ownership of companies (13%) and representation of women as managers (18%) is far lower than that of men. The Science, Technology, Engineering, and Mathematics (STEM) pipeline is a worse state with STEM higher education course completion rates of only 11% by women compared to men (21%). Women’s attainment of training in areas such as engineering, manufacturing, and construction is extremely low (2%) compared to that of men (6%).
In Rwanda for instance, the use technology to enhance STEM teaching and learning through Virtual Reality, Augmented Reality, Mixed Reality, as well as robotic programming, has been launched in secondary schools. According to data from the ministry of education in Rwanda, this programming started with 150 schools, five in each district with the aim to scale and roll out to all schools nationally.
Tech-enabled teaching in schools is enhancing efficiency of student/teacher collaboration and communication within the teaching and learning process, whereby teachers administer quizzes and assessments and get feedback faster. Microsoft Tech teaching, use of robotics to enable improved engagement of students in hands-on activities are deployed into schools to enforcing students’ abilities in computer programming or to develop students computational thinking to logically solve real-life problems by modelling problems and designing solutions.
Generally in Kenya, manufacturing makes up 23% of micro-small and medium enterprises (MSME) in the informal economy, with only 48% of these businesses being licensed. The majority of jobs (90%) created in Kenya are in the informal economy, with 768,000 informal sector employees in 2019.
Most of the jobs in the manufacturing sector are informal with formal employment representing only 12% of the sector’s workforce.
Out of the total employees in the sector only 61,100 (17%) were women.
Although this study showed that the representation of women in senior management was higher than a third in participating companies this was not the case for the total female workforce in those companies.
There are several barriers keeping women from taking a larger share of the manufacturing sector in the country, according to the report.
Barriers Affecting Women’s Participation in Manufacturing
Uncompetitive Operating Environment: The manufacturing sector in Kenya operates in a challenging environment. The high cost of production (electricity and fuel) and a complex taxation framework affects profitability and makes it a harsh operating environment. The study also sites issues of compliance, gaps in standardisation, and variable enforcement of laws and regulations as some of the challenges to the sector. Some of them are too stringent. For instance, the Kenya KRevenue Authority34 penalizes manufacturers instead of enabling them through mutual agreements and discussions. Some regulations can be too restrictive to multi-national companies leading to reduced investment by multinationals or their relocation to other countries. (Woman Leader; Food, and Beverages). The cost of complying with these multiple requirements and operating licences through various agencies can be prohibitive. since most women are also faced with challenges with access to funds. This is especially because many do not have a tangible security that can be used to get access to loans.
Access to Capital for Women: On access to initial capital outlay (ICO) the study noted that some female entrepreneurs had experienced only a few challenges due the security of existing investments and/or family support, most of them indicated that it was a difficult task raising requisite capital.
They reported that commercial banks have stringent requirements for finance that many women may not be able to meet. Because of these reasons women generally utilize alternative mechanisms to address the challenges associated with difficulties in accessing capital by:
- Forming socio-economic welfare clubs (commonly referred to as “chamas” or “merry-go-rounds” with other women to support each other in meeting their financial needs);
- Joining cooperative SACCOs36;
- Securing loans from financial institutions known to meet the specific business and credit needs of women such as Kenya Women Finance Trust (KWFT). KWFT was founded in 1981 by a group of professional women from different professions namely lawyers, bankers, financial experts, entrepreneurs and trainers, they were driven by the passion of establishing a Financial Institution that would be committed to exclusively address the financial and non-financial needs of the women in Kenya. The bank now has 80% of its clients residing in the rural areas. The institution has made a deliberate effort to reduce inequalities and enhancing financial inclusion by ensuring that its operations reach far and wide to provide equal opportunities to all women and their families around the country. To foster this need KWFT has invested in a vast branch network of 245 offices spread out across 45 out of the 47 counties in Kenya.; and
- Using their savings. While a number of leading banks have now developed products aimed at female entrepreneurs, there is a reluctance of women to access these products due to the need for collateral and the higher risk should there be any defaulting on repayments of loans.
Other challenges faced by Women Owners, Leaders, and Employees:
Small and Medium Enterprises Women operating small and medium enterprises (SMEs) face a spectrum of challenges. Although the Government of Kenya has developed short-term loans and affirmative action funds targeted to women, these remain inadequate for the capital-intensive manufacturing sector. Access to capital and a limited range of innovative commercial financial products for funding women-led start-ups continues to be a persistent problem. Even when motivated and able to access commercial financial products, many women remain limited by their lack of assets for use as collateral.
Informal Enterprises Most women-owned manufacturing businesses are MSME and operate in the informal sector. These enterprises are faced with a high cost of production, high cost of transport, and high cost of capital outlay. Despite the significant role of the informal sector in the economy, many of these businesses remain unable to grow into medium-sized enterprises. This is attributed to the lack of access to markets and marketing information, low access to adequate finance, limited knowledge and skills in business management including in accounting and book-keeping, and limited access to technology and machinery. Their workforce is made up of unskilled labour, and productivity remains low due to the use of rudimentary technology.
KAM’s recommendations for Women Working in the Manufacturing Sector
- Leverage individual strengths through networks and associations to amplify women’s voices for policy dialogue, access to markets, access to technology, and other incentives.
- Identify and tap into existing opportunities for career advancement and skills through TVET courses and existing mentorship programmes
- Advocate for the institutionalization of genderresponsive policies against discrimination, sexual exploitation, and others for female workers.
The journey is a progressive one and so long as there are consistent efforts by all key players in the manufacturing sector, we stand to see huge changes in the industry as well as the tremendous growth projected should players embrace these recommendations.
“Inclusivity and gender equality is indeed a shared responsibility. We endeavour to partner with government and like-minded organizations to realize this agenda whilst realizing our industrial goals as a nation,” said Ms Flora Mutahi Chair, Women in Manufacturing Programme (WIM).
The good news is that the Kenyan Government is making some critical moves to ensure that the state of affairs in women in manufacturing is drastically improved. Among the measures is the move to make reforms aimed at improving the ease of doing business, Kenya offers opportunities that can enhance women’s participation and contribution in the industry through increased affirmative action opportunities. Among these opportunities the government has ensured that there is access to Government Procurement Opportunities (AGPO) and a number of government affirmative action funds such as Women Enterprise Fund (WEF) and UWEZO Fund.
Currently, through the KAM initiative, the Women in Manufacturing (WIM) Programme has opportunities to engage with relevant government ministries in advocacy for inclusive policies that are gender-responsive and evidence-based.
