Principal Secretary Urges Kenyans to Embrace Industrialization.


Dr. Juma Mukhwana, Kenya’s Principal Secretary for Industry, has called on citizens to actively participate in the manufacturing sector to help stimulate economic growth and reduce the cost of living. Speaking at a recent company launch, Dr. Mukhwana highlighted the need for Kenya to tap into vast market opportunities available through newly signed trade deals with the European Union, the United Arab Emirates, the United Kingdom, and the African Continental Free Trade Area. He emphasized that these agreements provide Kenya with access to nearly half of the global market under duty- and quota-free terms.

Dr. Mukhwana expressed disappointment that Kenya has only utilized about 1% of the African Growth and Opportunity Act (AGOA), a trade deal with the United States that is set to expire in September. He urged the country to fully capitalize on upcoming trade agreements and increase export-oriented production.

“Africa is attracting investment interest globally, but we must ask ourselves what we are doing to make the continent more investable,” he said. “Relying on imports and exporting raw materials will not drive industrial growth. Instead, we must build our local manufacturing base.”

He noted that only 20% of Kenya’s basic goods are produced locally, while 80% are still imported. He contrasted this with Africa’s share in global manufacturing, which remains at just 2%, despite the continent accounting for 17% of the world’s population.

Dr. Mukhwana emphasized the need for an industrial revolution in Kenya and across Africa. He pointed out that importing finished goods results in job losses, as it shifts employment opportunities abroad that could have otherwise been available to local workers.

He encouraged entrepreneurs to rethink their investment strategies and leverage County Aggregation and Industrial Parks (CAIPs) to improve their products before reaching out to the market. The State Department for Industry, he added, is offering infrastructure and equipment support to small and emerging businesses.

The Kenya Development Corporation (KDC) recently hosted a sectoral forum aimed at promoting strategic investments and inclusive economic growth. The event brought together over 1,000 stakeholders from the private sector, government, and development finance institutions. Participants signed agreements and showcased innovations in post-harvest handling, manufacturing, digital technology, healthcare, tourism, and climate-resilient practices.

According to KDC CEO Norah Ratemoh, the forum aligned with the Bottom-Up Economic Transformation Agenda (BETA) and provided a platform for targeted discussions to advance equitable development. KDC Chairperson Sakwa Bunyasi stressed the importance of channeling long-term investments into impactful sectors, stating, “Our focus is not just on economic figures but real transformation—from farms to factories.”

To support sustainable industrialization, KDC is offering concessional financing, particularly to MSMEs and high-potential value chains. This includes a five-year $40 million investment in the livestock value chain and the launch of a Green Fund for climate-smart businesses.

Centum Investment Company CEO Dr. James Mworia also highlighted the role of private equity and venture capital in accelerating corporate growth and job creation. With Kenya needing to absorb over 700,000 new job seekers annually—while only about 100,000 formal jobs are created—he emphasized the need for capital that provides not just funding, but also strategic guidance and management support.

Dr. Mworia cautioned against harsh tax regimes, noting that “capital flows to environments with higher returns and lower risks.” He added that private sector investment currently contributes just 1% to Kenya’s GDP—far below the global average of 3%—and called for greater focus on equity investments over public debt to safeguard the country’s economic stability.

He warned that the shift in capital toward government securities poses a risk to long-term growth, as it may lead to revenue shortfalls, social inequality, and increased security threats.