Thread by @PolicyNextgen

EXPLAINER

Hello Folks! Development in Manufacturing and Industrialization can only be achieved through consistent, systematic and strategic government policy. Today, we look at Laws and Policies guiding INDUSTRIALIZATION in Kenya: 🧵

1. WHICH KENYAN LAWS GOVERN INDUSTRIALIZATION?

📖The Constitution of Kenya – The Constitution guarantees property rights, (art 40), fair competition(art 46) and environmental protection (art 42). It allows counties to promote local industries (Chap 11)...

and protects labor rights (art 41), creating a stable environment for industrial growth.

📖Special Economic Zones (SEZ) Act: It establishes SEZs with incentives such as tax breaks, simplified licensing and modern infrastructure to attract local and foreign investors.

It promotes export-oriented manufacturing, technology transfer, and job creation, boosting Kenya’s industrial base.

📖Export Processing Zones (EPZ) Act: It encourages export-driven manufacturing by offering duty-free imports, tax holidays and fast-tracked customs processes.

It focuses on increasing foreign exchange earnings and integrating Kenyan industries into global supply chains.

📖Public Procurement and Asset Disposal Act (Local Content Requirements): It requires public projects to source a set percentage of goods and services locally.

This promotes domestic manufacturing, stimulates SME growth and builds capacity in key industrial sectors through guaranteed market access.

📖Investment Promotion Act – It facilitates investment by streamlining approval processes, offering incentives and protecting investor rights; attracting both domestic and foreign capital.

2. WHICH POLICIES PROVIDE A FRAMEWORK FOR INDUSTRIALIZATION?

✅Vision 2030: It targets manufacturing to contribute at least 20% of GDP by 2030; create at least 1,000,000 jobs annually (across all sectors);

develop industrial and technology parks in all regions and implement full value addition in key sectors like agriculture, mining and oil.

✅Big Four Agenda: It sought to raise manufacturing’s GDP share from 8% to 15% by 2022; create 1 million new manufacturing jobs;

fully revive the textile, leather and agro-processing industries; and cut imports of building materials and pharmaceuticals.

✅Bottom-Up Economic Transformation Agenda (BETA):
It aims to establish at least 1 county-based industrial park,increase local value addition

in agriculture and expand affordable credit access to small-scale manufacturers.

✅The National Industrialization Policy Framework (2012-2030): It establishes a vision for Kenya to become Africa's leading industrialized nation with a diversified manufacturing sector.

Key objectives include raising the industrial sector's GDP contribution from 7% to 15% and developing niche products for export.

✅The Standards Act (Cap 496): It establishes the Kenya Bureau of Standards (KEBS) to promote standardization in industry and commerce.

It supports industrialization by ensuring quality control, enhancing product reliability, and boosting investor confidence in Kenyan manufacturing.

✅Kenya Industrial Transformation Program: It targets to raise exports of manufactured goods and expand agro-processing capacity.

✅National Trade Policy: It seeks to increase exports as a share of GDP, grow manufactured exports, reduce the trade deficit and integrate Kenyan industries into regional and global value chains.

3. WHAT IS THE ROLE OF COUNTIES IN INDUSTRIALIZATION?

🪙Local Industrial Planning and Policy Implementation: Counties integrate industrialization priorities into their County Integrated Development Plans (CIDPs), aligning with national policies like Vision 2030,

BETA and the Kenya Industrial Transformation Programme.

🪙Infrastructure Development: Counties invest in supportive infrastructure such as industrial parks, markets, feeder roads, power distribution and water supply to reduce production costs and attract manufacturers.

🪙Promotion of Value Addition:
Counties support agro-processing and mineral beneficiation industries that utilize locally available raw materials.

🪙Support for MSMEs and Jua Kali Sector: Counties provide training, workspace and equipment to small-scale manufacturers, artisans, and cooperatives to strengthen grassroots industrial capacity.

🪙Market Development: Through procurement policies, counties can prioritize local goods in public projects; boosting demand for locally manufactured products.

Ends!!