Kenya Targets Manufacturing-Led Growth as Industrialisation Summit Courts Investment

Share

Kenya is seeking to turn its manufacturing potential into a stronger engine for investment, exports and job creation as policymakers and industry leaders prepare for the Kenya Industrialization Summit and Changamka Shopping Festival in Nairobi from November 3–7, 2026.

The five-day event, scheduled for the Kenyatta International Convention Centre (KICC), comes as Kenya faces growing pressure to deepen local production, improve the competitiveness of its products and attract investment into value addition rather than relying heavily on imported finished goods.

Organised around the industrialisation agenda, the summit will bring together manufacturers, government agencies, investors, development partners, academia and consumers to develop policy recommendations aimed at strengthening Kenyan industries and expanding the market for locally manufactured products.

The initiative is expected to provide a platform for businesses to identify investment opportunities, build commercial partnerships and engage policymakers on the challenges affecting industrial expansion, including production costs, access to markets, technology adoption and regulatory efficiency.

Kenya Association of Manufacturers (KAM) Chairperson Hitesh Mediratta, United Nations Industrial Development Organization (UNIDO) representative Lynette Luvai and KAM Head of Consulting and Sustainability Joyce Njogu were among the industry stakeholders represented at the summit’s launch briefing.

The organisers are seeking to strengthen collaboration between government, industry, academia and development partners while increasing the visibility of Kenyan-made products in domestic, regional and international markets.

Manufacturing at a crossroads

The summit comes against a mixed performance by Kenya’s industrial sector, with official data showing that manufacturing continues to expand but remains a relatively small contributor to the economy.

According to the Kenya National Bureau of Statistics’ Economic Survey 2026, manufacturing’s real value added grew by 2.0 per cent in 2025, down from 3.0 per cent in 2024. Its contribution to gross domestic product declined to 7.1 per cent from 7.3 per cent.

Despite the slowdown, formal manufacturing employment increased by 5.2 per cent to approximately 388,600 people in 2025, representing 11.7 per cent of total formal wage employment. The figures underline the sector’s importance to employment while highlighting the need to accelerate industrial growth.

Production gains in selected industries demonstrate opportunities for further investment. Processed milk output increased to 701.5 million litres in 2025, up from 619.1 million litres in 2024, while assembled vehicle production rose to 13,692 units from 11,555.

The challenge for policymakers and investors is to translate such gains into broader industrial capacity, stronger domestic supply chains and more competitive exports.

Investment agenda takes centre stage

For the government, the summit offers an opportunity to connect industrial policy with practical investment decisions. Discussions on competitiveness, local sourcing, industrial technology and market access could help identify reforms needed to encourage both domestic and foreign investors to establish or expand manufacturing operations in Kenya.

Principal Secretary for the State Department for Industry, Dr. Juma Mukhwana, is expected to be central to the government’s industrialisation agenda.

“Kenya’s industrial future depends on our ability to create an enabling environment in which manufacturers can invest, innovate and compete. We must strengthen local production, support value addition and ensure that Kenyan enterprises can access markets beyond our borders,” Mukhwana said.

The summit could also help investors identify opportunities in agro-processing, textiles and apparel, automotive assembly, construction materials and other industries with potential to generate employment and reduce import dependence.

Greater cooperation between manufacturers and universities could support research, skills development and technology transfer, helping local enterprises improve productivity and meet international quality standards.

The participation of development partners, including UNIDO, also creates an opportunity to advance discussions on sustainable manufacturing, resource efficiency and the adoption of cleaner industrial technologies.

 

 

Charity Shitote
Charity Shitote
Charity Shitote is a communications professional and editorial writer specializing in strategic storytelling, media production and social impact. She produces high-quality, audience-focused content across fast-paced media formats, translating complex research and issues into compelling and accurate stories.

Read more

Local News