The manufacturing sector is crucial for Kenya's economic development. It employs over 350,000 people, second only to the public sector. Yet the sector has faced numerous challenges, including the policy environment, energy costs, and cost and tenor of capital.
Kenya's industrialisation potential has been hampered by these challenges, with the manufacturing contribution to GDP falling from 10 percent in 2011 to 7.6 percent in 2024. The contribution of the sector will likely decrease even further by 2025/2026.
