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Manufacturing to contribute 20 pct of Kenya's GDP in ten years

27 August 2014, 10:32

Nairobi - Kenya's manufacturing sector will contribute 20 percent of Gross Domestic Product (GDP) in ten years, a senior government official said on Tuesday.

Industrialization Cabinet Secretary Adan Mohammed told journalists in Nairobi the share of manufacturing to GDP has remained at around ten percent for a long period of time.

"The goal will be achieved by ensuring that the right enablers are in place to support local industries produce competitive products for the regional and international markets," Mohammed said during the launch of the Yana tyres.

He said the high cost of electricity is one of the challenges facing the industrial sector.

"The government will therefore increase power supply from the current 1700MW to 6700 MW in the next four years so as to reduce the overall power cost by 40 percent," he said.

The East African nation is also undertaking massive investments in infrastructure that will ensure the cost of logistics is reduced.

"The construction of over 10,000 kilometers of roads, the Standard Gauge Railway as well as the expansion of the main port of Mombasa is on course," he said.

According to the ministry of industrialization, all these investments are geared towards making Kenya the number one investment destination in Africa.

Mohammed said that regional markets are currently the most promising destination for Kenya's manufactured goods.

"Successfully negotiations have led to the elimination of eight non tariff barriers in the East African Community Bloc," he said.

Mohammed noted industrialization will be accelerated by encouraging large firms to sub contract to small and medium sized entrepreneurs who often lack access to skills and finance.

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