At its present stage, Kenya needs industrialisation to establish itself as a nation that can achieve economic independence through job creation.
Kenya faces an increasing youth demographic that requires the country to transition its focus from a service-driven economy to a production-based one.
The County Aggregation and Industrial Park initiative provides exceptional possibilities to lead economic evolution while promoting manufacturing operations alongside value addition and innovative initiatives.
If prioritised through proper funding and complete execution, these parks will transform Kenya’s economy by creating thousands of jobs while improving its global market position.
Kenya’s economy has relied heavily on agriculture and services for years; industrialisation remains the missing link.
Manufacturing represents 7.6 per cent of Kenya’s GDP, much lower than that of nations with established industrial systems.
Due to the low establishment of industries, Kenya has developed too much dependence on foreign imports, which generates trade deficits and restricts employment opportunities.
By embracing industrialisation, Kenya can: One, boost employment. Industrial production needs a variety of trained personnel such as professional engineers and factory operatives.
Two, enhance value addition. Local processing of unprocessed materials leads to higher revenue and better market position against competitors.
Three, strengthen local enterprises. Industries generate supply networks that boost local business development, including transportation services and equipment supply industries.
Four, reduce import dependency. Nationwide local manufacturing operations decrease the need for imported products, strengthening foreign currency reserves. Through the CAIP initiative, counties can attain increased economic power to foster local development.
Industrial parks operate as manufacturing and innovation centres that optimise resources based on county assets. They serve as research centres, leading to development of new products and technologies.
Parks enable small and medium enterprises to access common facilities, substantially decreasing operating expenses and boosting business expansion.
Industrial parks require upgraded roads, electricity and water services to create improved infrastructure that benefits surrounding neighbourhoods.
Foreign investment, together with local capital, becomes more accessible to regions that develop industrial infrastructure. Completing county aggregation and industrial parks remains a most important factor in achieving successful industrial development.
The government should expedite these projects through immediate action by providing enough financial resources to construct essential infrastructure, including roads, electrical facilities, and water distribution systems.
Industries within these parks will receive tax breaks as an incentive from the government. The country should ensure a consistent policy framework to provide investment assurance for industrialists and investors. It should also enable public-private partnerships that permit private sector involvement for resource and expert support.
The parks possess the potential to generate millions of employment opportunities, thus lowering joblessness and establishing lasting economic progress.
The leather industry, for instance, is a promising sector that Kenya needs to intensify its development. Kenya’s large livestock population—over 18 million animals—provides abundant leather raw materials.
However, the country exports most of its hides and skins in raw form, missing out on the lucrative global leather market worth over $100 billion (Sh12.9 billion) annually.
The leather-processing potential of pastoral counties such as Laikipia is great due to its large livestock size. By making investments in tanneries and factory production for footwear and manufactured leather goods, pastoral counties can contribute immensely to economic growth.
The leather industry can generate thousands of direct and indirect jobs across the value chain. Additional export revenue can be collected by producing highquality finished leather products.
Local economic growth is enhanced by reducing reliance on imported leather goods, keeping money within the local economy.
Rural development will be improved by providing farmers with stable markets for hides and skins. Industrialisation is not an option; it is a necessity for sustainable economic growth and job creation.
The CAIP programme represents an excellent opportunity for Kenya to transform its manufacturing sector alongside business innovation and homegrown economic independence.
Jamlic Munyasya is an economist and business consultant
