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.