The presidential assent to the Special Economic Zones (SEZ) Act in 2015 is not the be all and end all of the process to establish SEZS. The country is now currently working on regulations that will guide the establishment and running of SEZs.
Kenya eyes manufacturing to bridge trade deficit
Kenya is banking on the manufacturing sector to bridge the growing trade deficit, a senior official said Wednesday.
Minister of Industry, Trade and Cooperatives Adan Mohamed told reporters in Nairobi that currently the value of Kenya’s imports were more than three times that of exports.
“A strong manufacturing sector will help Kenya to reduce trade deficit because it will reduce imports of manufactured goods which account for a significant portion of the import bill,” Mohammed told a media briefing on an upcoming manufacturing expo and meeting.
The three-day event will review ways to expand Kenya’s manufacturing sector. Over 100 exhibitors from the manufacturing sector are expected to showcase their products.
Official data indicate that the manufacturing sector’s contribution to Kenya’s gross domestic product (GDP) has stagnated at 11 percent over the past five years.
“This is largely because our manufactured products are not competitive in the international market due to high cost of production,” Mohamed said.
The government is seeking to expand the GDP contribution of the manufacturing sector to 15 percent by 2030.
“This is an ambitious goal but can be achieved if government works closely with the private sector,” Mohamed said. Enditem