The Kenya Association of Manufacturers (KAM) has called for urgent government action to lower the cost of doing business, warning that high electricity tariffs, corruption, inefficient logistics, and burdensome regulatory processes continue to constrain industrial growth and erode the competitiveness of locally manufactured products.
In an update on Monday, the association says addressing these challenges through targeted policy reforms will help unlock Kenya's manufacturing potential, attract investment, and spur job creation.
KAM Chief Executive Officer Tobias Alando says Kenya has the capacity to expand its manufacturing sector, but must first tackle persistent structural bottlenecks that continue to increase production costs and limit industry growth.
He identified the high cost of electricity as one of the biggest obstacles facing the sector, saying expensive energy continues to increase production costs and reduce the competitiveness of Kenyan products in both domestic and export markets.
"We have opportunities in this country to impact the world through manufacturing positively, but we must address corruption, reduce production costs, and create an enabling business environment," Alando noted.
Industry leaders said reducing the cost of production should be a priority, urging both the national and county governments to introduce special electricity tariffs for manufacturers, streamline licensing procedures, and invest in transport infrastructure to improve efficiency.
They also called for the removal of non-tariff barriers and the harmonisation of county regulations, arguing that inconsistent policies across devolved units continue to increase operational costs, disrupt the movement of goods, and undermine the competitiveness of locally manufactured products.
KAM Coast Region Chairman Abdalla Athman noted that unreliable utility services and persistent traffic congestion, particularly around the Port of Mombasa, were reducing the competitiveness of Kenyan products within regional markets.
He explained that delays in cargo movement and infrastructure bottlenecks continue to affect efficiency at one of East Africa's busiest logistics hubs, increasing costs for manufacturers and exporters.
Mombasa Governor Abdulswamad Nassir also highlighted that the county government is working with stakeholders, including the Kenya Ports Authority, to improve cargo movement and reduce congestion.
According to the governor, plans are underway to establish a marshalling yard that will streamline truck operations, while electronic traffic management systems will be introduced to improve traffic flow and logistics efficiency.
The calls come as manufacturers continue to advocate broader policy reforms aimed at lowering the overall cost of doing business in Kenya.
Industry leaders argue that reducing production costs, improving infrastructure, addressing corruption, and creating a predictable regulatory environment will enable local firms to compete more effectively in regional and international markets.
They maintained that strengthening the manufacturing sector will not only enhance the competitiveness of Kenyan-made products but also stimulate investment, expand industrial output, and create more employment opportunities, reinforcing the sector's contribution to the country's long-term economic growth.