Tap into EAC market to increase incomes, manufacturers told

Kenyan manufacturers have been challenged to take advantage of the expanded East African Community market to create more jobs and increase incomes.

EAC and Regional Development PS Kevit Desai said with the inclusion of the Democratic Republic of Congo, the market size population has hit 350 million with a turnover of $250 billion.

This, he said, makes it the fourth largest market in the world after India, China and the US and is set to transform the lives of citizens in the region.

“This market holds endless opportunities to organisations like Capwell to diversify their manufacturing and, most importantly, to achieve what EAC espouses which is value addition and value chains to ensure the wealth reaches every citizen in their respective countries,” Desai said.

Desai was addressing journalists after a tour of Capwell Industries in Thika, Kiambu county, where he inspected milling and packaging of maize meal, rice and other cereals, many of which are meant for export.

The PS was on a mission to verify and assess the preparedness within the context of the Kenyan manufacturing capability to support some of the key policy reforms that were initiated during President Uhuru Kenyatta’s tenure as the chairman of EAC.

“This opens up transformative capacities as far as trade groups and accessing more countries within the trade area,” Desai said. 

The PS, who was accompanied by Capwell Industries Limited CEO Rajan Shah, said under President Uhuru’s chairmanship which came to an end this year, EAC has made a number of achievements.

Some of the achievements include a consensus on common external tariffs which was developed in partnership with the private sector.

“This means now industries can innovate and differentiate their produce and diversify their production with a view of being assured of a nurturing capacity by the EAC governments to support local manufacturing,” Desai said. 

The PS appealed to local industrialists to tap into the huge EAC market through value addition, adding that the Kenyan manufacturing sector has a bright future.

Desai said the government will work closely with manufacturers to not only access markets, but also promote compliance of the set regulations and policies.

“The government is playing its role in enhancing trade by ensuring proper infrastructure is put in place to promote high level efficiency in transportation of our products and value added products,” he said. 

Shah, who is also the Kenya Association of Manufacturers chairman, said that despite Kenya exporting goods and products worth $500 million yearly, the country needs to up its competitiveness globally.

“If we are not competitive, we cannot access our markets abroad. We have to improve our efficiency in productivity and invest in technology so that we bring down our cost of production so that we can become competitive using modern technologies and best processes,” he said.

Shah also said following the lowering of maize flour price as a result of a government subsidy on milling charges, his company was producing enough stocks to meet the demand.

Capwell Industries Limited deals with processed milled cereal products, including rice, maize, porridge and wheat flours, pulses and spaghetti, and has recently introduced Kenya’s first cereal beverage drink, Yola.

Its other brands include Soko, Amaize, Pearl, Ranee, CIL and Yola.

The company's flagship brand 'Soko' is among various maize meal products which fall under the subsidised prices.

(edited by Amol Awuor)