Kenya needs to diversify to medium and high technology products in order to secure and expand market share in the East Africa Community, a report has said.
Kenya Economic Report 2017 released last week pointed to slow growth in the local manufacturing sector, urging the government to focus on reducing cost of doing business to secure and attract foreign investments.
In the report, Kenya posted mixed results in industrial investments, with new companies entering the Kenyan market and others relocating to other regional markets, due to the competitive environment created domestically and complemented by regional integration initiatives.
“Kenya’s share of manufactured exports to the region has narrowed with the strengthening of manufacturing sector in partner states. In addition, counterfeit products threaten growth of the manufacturing sector,”the report reads in part.
With increased importation of cheap products into the local and EAC markets and the strengthening of the manufacturing sector in the EAC, growth of Kenya’s manufacturing sector faces threats. Others are increased illicit trade, unskilled labour, relatively high cost of production, and power outages, it said.