Mimi Mavuti, Head of Business Communication and Sustainability, BAT Sub-Saharan Africa Area
This year’s Africa Industrialisation Day, marked on the 20th of this month under a theme centering on Sustainable Industrialisation, Regional Integration and Innovation, offers Kenya a moment to reflect on how deliberate deployment of sustainable practices catalyses sustainable industrial growth.
Kenya stands at an inflexion point where sustainable industrialisation is no longer aspirational—it is the decisive pathway to securing our global competitiveness.
A key enabler of industrialisation is sustainable energy infrastructure. Data from the Energy and Petroleum Statistics Report for the Financial Year Ended June 30, 2025, by the Energy & Petroleum Regulation Authority (EPRA), shows that of the total power generated in the year ended June 2025, renewable power accounted for 80.17%.
Of this, geothermal was at 39.51%, hydropower 24.21% and wind power at 13.18% while utility-scale solar installations contributed 3.27%. To enhance this, the government has put in place various policies to generate 100% of electrical energy from renewable sources by 2030.
In tandem with this is manufacturing, which is a major energy consumer and a driver of industrialisation through trade facilitation.
Kenya’s manufacturing sector contributes approximately 7.3% to the Gross Domestic Product as of 2024, a figure that has declined from 11.3% in 2010, according to the Kenya Association of Manufacturers (KAM).
Only a stable, predictable, and innovation-friendly regulatory environment can unlock the full potential of our manufacturing sector and protect it from the existential threat of illicit trade.
Achieving this goal, especially for the country’s growing private sector, demands that systemic constraints key to sustainable energy access are addressed, including infrastructure gaps, access to industrial financing and regulatory streamlining.
Regional integration via the African Continental Free Trade Area (AfCTA) increases the stakes for industrial competitiveness. Access to a larger market makes specialisation more viable and allows Kenyan manufacturers to capture scale economies, which may not be possible in a fragmented or smaller environment.
Kenya’s diversified economy, combined with renewable energy abundance, should attract firms seeking stable production platforms with continental reach. I believe that manufacturing driven by technology, innovation and infrastructure requires both dependable energy and technical expertise. This integrated approach helps to ensure that value addition occurs efficiently while building inclusive technical capacity.
Kenya is addressing this in part through parallel investments in renewable infrastructure and Science, Technology, Engineering and Mathematics (STEM) education.
For instance, the KOICA-GIZ TVET Project, a joint initiative by Kenya’s Ministry of Education, the Korea International Cooperation Agency, and GIZ to equip Kenyan youth with future-ready skills in, among other areas, manufacturing and renewable energy, is a notable step towards the development of an inclusive and sustainable future for Kenya.
As important, sustainable industrialisation must be firmly anchored on a predictable fiscal and regulatory environment which enables medium and long-term planning.
Illicit trade, such as in the tobacco industry where illegally taxed cigarettes account for approximately 37% of the market, and counterfeits such as in the alcohol, cosmetics and electronics industries, is becoming a critical existential threat that needs urgent and decisive attention.
Irrefutably, addressing this critical issue will take a whole-of-society approach to help ensure that legitimate industry and the livelihoods of Kenyan supply chains are protected.
At the same time, for industrialisation to be fully sustainable for Africa, it must be pegged on innovation. Utilisation of science and modern technology in product design and innovation ensures that business solutions remain relevant and responsive to the evolving needs and demands of consumers. It is also prudent that regulatory frameworks align themselves with the rapidly evolving marketplace, and even better, be a step ahead through proactive engagement with the private sector.
If we are to realise Vision 2030, we must treat industrialisation as a national priority, anchored on renewable energy, skilled talent, and a whole-of-society commitment to safeguarding legitimate industry. Services alone cannot generate growth at this magnitude while providing broad-based employment. Manufacturing creates formal jobs with competitive wages, develops technical capabilities that are transferable across industries and establishes production competencies that compound over time.
As Africa Industrialisation Day highlights sustainable industrialisation's centrality to economic transformation, the synergies are apparent. It is time that we up the ante to help accelerate sustained and sustainable industrialisation and socio-economic development in our country, for the prosperity of all.
The writer is the Head of Business Communication and Sustainability, BAT Sub-Saharan Africa Area
