Browsing: Kenya Association of Manufacturers (KAM)

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  • Businesses in Kenya are facing the impact of tightened monetary policy that is resulting in high lending rates.
  • The government is under increasing pressure from investors to settle huge pending bills.
  • At the same time, the Kenya Shilling is steadily losing ground against major world currencies, piling pressure on external debt obligations.

In the second half of the year, business optimism for companies and sectoral growth prospects in Kenya appears to be subdued, largely influenced by the dual challenges of high taxes and a weakening Shilling.

The government's task of balancing rising debt levels with tax revenue generation is taking center stage in a scenario complicated by other economic factors.

A confluence of high-interest rates within the banking sector, a politically sensitive environment, the accumulation of pending bills that impact private sector cash flow, and the depreciation of the Kenyan Shilling is painting a complex business environment.

The Shilling has…
  • The Kenyan shilling has fallen to a new low of 140.04 against the US dollar.
  • Central Bank of Kenya data shows the unit is also losing to other major currencies including British Pound and Euro.
  • Last year, the Kenyan shilling depreciated by about 7.5 per cent against the US dollar, the UAE dirham (7.5%), Saudi Riyal (7.4%) and the Chinese Yuan (3.1%), the Kenya Economic Survey 2023 shows.

As developing market currencies continue to suffer from the worldwide increase in interest rates, which is being spearheaded by the US Federal Reserve, the Kenyan Shilling has dropped to a historic low in relation to the US Dollar.

The Fed has increased the benchmark rate ten times in a row, or a total of five percentage points, since March of last year. In the last 40 years, these increases are the most abrupt. In an effort to combat US inflation, interest rates…

Kenyan manufacturers raise concerns on the Finance Bill 2023

Kenyan manufacturers have raised concerns over several proposals in the Finance Bill 2023. The country looks forward to the next financial year’s budget that the treasury cabinet secretary will table in June. The country’s National Treasury has proposed several new tax measures. Under these measures, the public and private sectors will cough more taxes to fund the 2023/24 budget.…

Counterfeit products problem in East Africa
  • Price point remains a key magnet for fakes across East Africa. Counterfeit products are often cheaper than their genuine counterparts, making them easy picks for people shopping for a bargain.
  • Some of the most counterfeited products in the region include pharmaceuticals, pesticides, electronics, cosmetics, alcohol, and cigarettes.
  • According to the East African Business Council, counterfeit products, primarily fast-moving consumer goods, are costing East African states between US$500 million and US$1 billion per year.

Counterfeiting sticks like a sore thump or a bad hangover causing a big headache for governments and policymakers across East Africa as rising number of products including pesticides, cigarettes, and alcohol become deeply affected by the menace.

Some of the most counterfeited products in the region include pharmaceuticals, electronics, cosmetics, liquor, and cigarettes. Other products that are often counterfeited are clothing, shoes, and accessories, as well as automobile parts such as batteries.

The illegal trade of…

  • The country is considered East Africa’s strongest economy.
  • It is among countries facing a huge challenge of illicit trade, estimated to be valued at above USD6.34 billion (Ksh800 billion).
  • According to official government data, up to 70% of imported goods are counterfeits.

Kenya has a domestic market of over 50 million people and is among the leading economies in sub-Saharan Africa.

The country is considered East Africa’s strongest economy, with the region having a GDP of about USD163.4 billion (at purchasing power parity, about USD$473 billion), and the average GDP per capita is about USD941 (at purchasing power parity, $2,722).

In addition to the EAC market, investors in the partner States have access to other African markets such as COMESA, SADC and AfCFTA, as well as international markets through preferential trade arrangements.

The Common Market for Eastern and Southern Africa (COMESA) comprises 21 Member States with a population of 560…

  • Public-Private Partnerships  have allowed  drilling and geothermal energy production capacity to rise.
  • Combined with hydro, these two sources contribute 65.62 percent of the total, while wind and solar account for 18.69 percent.
  • While Kenya Power has tried to revise energy prices in the country, analysts observe that expanding geothermal investments will provide the country with cheaper power for future expansion.
Kenya is the leading producer of geothermal energy in Africa and ranks seventh in the world, behind the United States, Indonesia, the Philippines, Turkey, New Zealand, and Mexico.
Ongoing investments, primarily through Public-Private Partnerships (PPPs), have allowed the country's drilling and geothermal energy production capacity to rise.
Part of this investment is the development of a 35MW Menengai geothermal project is scheduled to begin this month, according to the London-based energy company Globeleq.
Toyota Tsusho Company (TTC) has signed an engineering, procurement, and construction (EPC) contract and a long-term service

Kenya Association of Manufacturers (KAM) has  launched an organization that will address post-consumer waste in Kenya. 

The launched Kenya Extended Producer Responsibility Organization (KEPRO) , according to KAM brings together players in the value chain.


KEPRO’s aim is to increase national awareness and protect Kenya’s natural environment from waste and pollution. This is being done by providing incentives and subsidies to improve the growth, efficiency and viability of the waste collection, sorting and recycling sector.

Also Read: UAE commences transporting oil to Europe via an Israeli pipeline

Through a press release sent to newsrooms on Wednesday June 9, 2021, the association said KEPRO aims to promote collaboration, seek commitment by waste value chain players and support the achievement of a circular economy in Kenya. 

Green growth in the manufacturing sector

Principal Secretary for Environment at the Ministry of Environment and Forestry Dr. Chris Kiptoo who spoke

KAM has partnered with Narok County Government and the EAC Lake Victoria Basin Commission to promote waste management.

Kenya has emerged third in East Africa in the Competitive Industrial Performance (CIP) Index Report, 2020 with position 115.

The country follows Tanzania which is position 123 and Uganda at position 128.

This rank puts the country lower than other competitor African countries but high compared to its East African counterparts. Egypt and South Africa rank at position 64 and 52 respectively.

Kenya top Competitive Industrial Performance

The Report benchmarks the ability of countries to produce and export manufactured goods competitively. It provides a yardstick against which Kenya can compare its manufacturing competitiveness on a global level.

It further indicates that China, which is ranked second in the CIP Index report, is very strong in manufacturing due to the use of high technology which is applied by 30.6% of its manufacturers whereas only 9.3% are resource-based manufacturers.

Comparatively, Kenya’s manufacturing sector export structure is dependent on resource-based manufacturers at 42.9% with high tech manufactures only …

KAM Chair Mr Sachen Gudka speaks during the High Level Manufacturing Economic Forum

Manufacturers have cited reducing costs and maintaining jobs as top priorities during the global pandemic.

This is according to findings of a KAM, KPMG report on the impact of The pandemic on manufacturers in Kenya.

Nations have put in place stringent measures to curb the spread of the pandemic which include lockdown regulations that have crippled business operations.

Despite fears of the impact of the pandemic on local industry, 81 per cent of manufacturers say they are not likely to close down as a result of the impact of the pandemic. However the report noted that this number reduces to 76 per cent for manufacturing SMEs.

To help businesses navigate the pandemic, the survey proposes clearing outstanding VAT refunds and pending bills, re-evaluating tax reliefs, providing moratorium on changes in the tax regime, establishing an emergency rescue fund, re-evaluating regulatory overreach, and developing a comprehensive rebound strategy among others.

Speaking …

KAM Chair Mr Sachen Gudka speaks during the High Level Manufacturing Economic Forum


Lack of prioritization and ineffective implementation of policies have been cited for gravely impacting Kenya’s manufacturing sector.

This came up during the high- level Manufacturer’s economic forum, organized by Kenya Association of Manufacturers, in Nairobi.

According to a statement from the Kenya Association of Manufacturers (KAM) , the forum which consisted of representatives from Academia, Government, Economic Think-Tanks and Industrialists, cited Kenya’s declining competitiveness in the region as a consequence of little or no implementation of existing policies, as well as, a consistent disruption of well-intentioned development programmes by each election cycle.

According to the KAM Chair Mr Sachen Gudka, Kenya’s manufacturing sector’s contribution to the GDP has averaged 10 per cent and has been on a declining trend, contributing 8.4 per cent to the GDP in 2017 and 7.7 per cent in 2018.

Manufacturing-led growth attributed to good policy implementation.

“Industrialised countries have experienced an average GDP growth …