Top of this document
Go directly to navigation
Go directly to page content

News: 11/02/2010

SME(s) in Manufacturing - Which Way

Kenya's long-term development blueprint Vision 2030 aims at transforming Kenya into a newly industrialized, middle income country providing high quality life for all its citizens through economic, social and political transformation programmes covering all regions.
There is therefore national goodwill for the establishment and growth of manufacturing business and great potential for growth in the provision of modern forms of energy with additional national focus on renewable energy resources.

The conflict between the environment and development is getting more fatal, thus demanding an immediate action to better environmental management strategies. Without a sustainable technical and economic solution to these conflicts will only serve to diminish livelihoods, increase industry costs throughout key value chains while causing irreparable harm to the common environment. Generating waste is unavoidable; it is therefore essential that sound management systems are implemented to minimize waste generation but also to maximize reuse, reclaim and recycling, and as the final solution , the recovery of energy and material from MSWs.

Petroleum energy, the main source of commercial liquid fuels, is used in the transport, commercial and industrial sectors; crude petroleum products account for about 8% per cent of Kenya’s total imports.
A key characteristics of Kenya's energy supply security arising from uncertainties (both price and availability) of regular and continued supply of petroleum from the Middle East source countries.

Kenya’s manufacturing sector contributes about 10.0 per cent of GDP growth. The sector accounts for about 14.0 per cent of wage employment, mainly in food processing, beverages, textiles, garments, wood processing, furniture and fabricated metal.
The manufacturing sector has performed relatively well between 2002 and 2007, however the sector’s potential is still hampered by the lack of consistent transformation and diversification in manufacturing towards high technology and high value products. Another concern is that improved output growth in the manufacturing sector has not been associated with strong employment creation.

The areas that require immediate attention in the manufacturing sector include the production of intermediate products, particularly those with export potential; encouraging subcontracting and other forms of alliances between local firms and multinationals, address supply-side constraints and low technological development and innovation.