Kenya --Industry
Kenya
leads East Africa in industrialization.
Considerable private-sector activity
has contributed to its primacy,
as has a comparatively well developed
infrastructure that included extensive
transport facilities. The expansion
of industry proceeded rapidly after
independence. The government's official
policy had been to encourage import
substitution. As a result, Kenya
quickly developed a number of industries
providing consumer goods like beverages
and tobacco, textiles, food products,
petroleum products, electrical appliances
and machinery, printing, paper products,
sugar and confectionery. Industry
has grown at a slowed pace since
the 1980's when manufacturing has
typically contributed only 10% of
GDP.
Government
policy concerning industry has shifted
from import substitution to trade
liberalization and export promotion.
Tariff groups have declined in number
from 25 in 1988 to three in 1997;
during this period, the highest
tariff rate was reduced from 135%
to 25%. However, liberalization
of industry has failed in its goal
to level the economic playing field
for importers and manufacturers.
This ambition has been hampered
by fraudulent and undervalued imports.
Export-promotion
businesses have flourished and replaced
the industries that failed during
liberalization. Kenya's government
has redirected its export-oriented
manufacturing strategy by establishing
Export Processing Zones and in-bond
manufacturing facilities at Nairobi,
Mombasa, Kisumu, Eldoret, Nakuru,
Nyeri and Thika.
Few
useful national data on manufacturing
exports exist for Kenya; however,
records show an impressive rise
in total dollar exports in 1993-96,
from $1.2bn to $2.04bn. This rise
has been attributed to increased
manufacturing exports to regional
markets. With a relatively well
developed regional manufacturing
base, Kenya is well placed to benefit
from the East African Cooperation.
As an example, Kenya breweries have
steadily increased investment in
Uganda and Tanzania since 1995.[1]
Industrial
Production:
|
YEAR |
Product |
1992 |
1993 |
1994 |
1995 |
1996a |
Sugar (000 tons) |
372 |
385 |
304 |
384 |
389 |
Cigarettes (m) |
7,031 |
7,266 |
7,319 |
7,931 |
6,393 |
Beer (m lit) |
369 |
349 |
303 |
347 |
276 |
Mineral water (m lit) |
133 |
132 |
131 |
122 |
140 |
Spirits (000 lit) |
1,480 |
2,259 |
1,674 |
2,262 |
2,888 |
Maize meal (000 tons) |
120 |
168 |
233 |
314 |
267 |
Wheat flour (000 tons) |
222 |
143 |
191 |
237 |
227 |
Petroleum prod. (000 m.t) |
2,231 |
2,092 |
2,058 |
1,827 |
1,761 |
Cement (000 m.t) |
1,507 |
1,416 |
1,452 |
1,566 |
1,816 |
Industrial output index %
1 |
245.4 |
249.9 |
254.6 |
263.9 |
273.6 |
% change |
1.3 |
1.8 |
1.9 |
3.7 |
3.7 |
|
1:
1976=100
a: Provisional
Source: Ministry of Planning and
National Development, Economic Survey.
[1]
The Economist Intelligence Unit,
1998, Country Profile. Kenya, The
Unit:
London,
pp. 25-26.