Exploit unique value chains to attract manufacturers, create jobs – Waiguru to counties

Kirinyaga Governor Anne Waiguru has asked counties to exploit their unique strengths and invest in value chains relevant to their areas to put the country’s manufacturing sector back on track.

While noting that manufacturing still remains the second-largest employer in Kenya after the public service, Waiguru emphasised that the country must remain focused on growing the sector so as to create more jobs and grow the economy.

She said each county has unique investment opportunities and advantages that, if well exploited, can attract many manufacturing industries.

Waiguru noted that no country can truly industrialise without a thriving manufacturing sector, adding that this has a ripple effect on the service industry, like accommodation, food, logistics, and other areas of investment.

She said Vision 2030 had envisioned the manufacturing sector to contribute 15 per cent of GDP; however, this has not been achieved.

“If we want this number to grow, we must remain focused. When I was at the Treasury during the Vision 2030 rollout, we had set a target for manufacturing to contribute 15 per cent to GDP. Around 2010 or 2011, we reached about 10 per cent, but since then, the contribution has declined. Today, manufacturing contributes only about 7.6 per cent to GDP. That shows just how much room there is for growth,” she said.

Speaking during the opening of the 1^st Murang’a Investment Conference in Thika, Waiguru said the National government, Counties and the private sector can all contribute to pushing the manufacturing sector back on track.

She said this would result in more jobs, stronger economic growth and a better future for the people.

“It is still possible to reach our target. Public service employs about 500,000 people, while the manufacturing sector employs approximately 370,000 to 400,000 people, depending on the data, which might vary slightly,” she added.

The Governor emphasised the need for counties to learn and support each other, especially in areas of success, saying that transforming a county into a hub of development “is not rocket science.”

She singled out the introduction of a Budget and Economic Council by Governor Irungu Kang’ata in Murang’a as a notable innovation, saying she had picked it as a lesson.

“One of the lessons I have picked today from Murang’a is the concept of a Budget and Economic Council, bringing on board eminent people from the county to participate in its development, this is a powerful idea,” she said.

Waiguru offered examples from Kirinyaga to demonstrate how counties can spur economic growth through integrated investment.

“In Kirinyaga, for example, we have a Special Economic Zone, an Export Processing Zone, and we were planning a golf course with a four-star hotel,” she said.

“All these contribute to the hospitality and tourism sectors, while the SEZ and EPZ support the manufacturing sector. So there is interconnected growth happening.”

She said availability of raw materials for agro-value addition, land for establishment of factories, railway and superhighway, water, electricity, close proximity to Nairobi, availability of affordable labour and friendly investment policies are what make the upcoming Sagana Industrial Park unique for investors.

She acknowledged Murang’a’s strategic location as a key impetus for industrial expansion, saying it is closer to Nairobi and Del Monte, terming this a significant advantage for its upcoming industrial park.