Kenyan Solutions: Prioritizing Production and Transactions for Sustainable Growth

Kenya has seen a wave of innovation focused on consumption—from mobile money to e-commerce and digital banking. These solutions have made life easier for consumers, but they are only optimizing one side of the economic equation. If there is little innovation in how goods and services are produced and exchanged, the country will continue to operate in an imbalanced system where economic value is created but not fully retained.

This is not about external blame. Every nation naturally prioritizes its own interests, and Kenya must do the same. The challenge is not that others are taking advantage—it is that Kenya has not yet built strong enough systems to ensure it benefits first from what it produces. To do that, the focus must shift from merely facilitating consumption to strengthening production capacity and transactional efficiency.

The Production Deficit: Are We Creating for Ourselves?

Across key industries, Kenya plays an essential role in global production, yet its own internal markets often remain underserved. This is not just an agricultural issue—it spans healthcare, finance, education, energy, and manufacturing.

• Agriculture: Kenya produces significant amounts of cash crops like coffee, tea, and flowers, but these are mostly grown for export. Meanwhile, food imports remain high, and local food security is still a challenge.
• Healthcare: Kenya has brilliant medical professionals, but many Kenyans travel abroad for specialized care. The pharmaceutical industry is similarly dependent on imports, with limited local drug manufacturing.
• Finance: Fintech has revolutionized payments, but long-term investment in industrial growth remains weak. Many Kenyan businesses struggle to secure funding for production-based ventures.
• Education & Talent Development: Kenya produces a skilled workforce, yet brain drain continues as top professionals seek opportunities abroad while local industries face talent gaps.
• Energy: Kenya exports oil and geothermal power but often imports refined fuel and electricity, missing out on value addition.

The issue is not just that Kenya produces for the world—it’s that internal production ecosystems are not strong enough to serve local needs effectively. Without focused investment in production, Kenya will remain dependent on external supply chains, even for goods that could be produced locally.

The Transaction Gap: Strengthening Market Systems

Even when Kenyan businesses create value, weak transactional systems prevent them from reaching their full potential.

• Intra-Kenyan Trade is Underdeveloped: It is often easier for Kenyan businesses to trade with global markets than with neighboring counties due to infrastructure gaps, regulatory barriers, and fragmented supply chains.
• Limited Local Supply Chains: Many Kenyan businesses rely on imported raw materials even when local alternatives exist, driving up costs and creating unnecessary external dependencies.
• Capital for Productivity is Scarce: While Kenya has a vibrant financial sector, most available financing is geared toward short-term commercial activities rather than supporting industrialization and value addition.
• Real Estate Over Industrial Investment: A significant portion of local capital is directed toward building malls and high-end real estate, which supports consumption rather than strengthening production or trade.

These gaps are not accidental—they are the result of choices, and they can be corrected by making different choices. Building efficient transactional systems will allow Kenyan products, services, and capital to circulate effectively within the country and across Africa.

Choosing Ourselves: Kenyan Solutions That Work

Kenya already has strong production-focused solutions, but they often lack the right funding and support. Meanwhile, investors frequently back "Uber for X" models, which optimize consumption rather than fixing primary-level issues. Ironically, solutions that sit at the production and transaction level have the most impact on DEI (Diversity, Equity, Inclusion), sustainability, and carbon footprints—the very metrics that global funding mechanisms claim to prioritize.

Case Study: TotoSci – Producing What Kenya Typically Imports

TotoSci is an example of a Kenyan company addressing production gaps. Instead of importing USB cables and chargers, TotoSci manufactures them locally, creating high-quality, affordable alternatives to foreign brands. Their products include:

• USB cables for various devices, including Micro USB, Type-C, and iPhone cables.
• Dual wall chargers, capable of fast charging multiple devices.
• USB-A to USB-C converters, allowing users to repurpose existing adapters.

Beyond manufacturing, TotoSci promotes sustainability by repairing damaged cables and chargers to extend their lifespan. They also recycle waste plastic for molding, reducing e-waste. This is a real production solution—it replaces imported goods, strengthens local supply chains, and promotes sustainability.

Case Study: Rivatex – Reviving Kenya’s Textile Industry

Rivatex is another local success story that proves Kenya can reclaim its production capacity. Once a struggling textile mill, Rivatex has made a comeback by producing high-quality fabrics using locally grown cotton. The revival of Rivatex is significant because:

• It supports local cotton farmers, reducing reliance on imported fabric.
• It creates jobs in the entire supply chain, from farming to retail.
• It is built within Moi University, a University that can train more textile experts.

Yet, despite its impact, Kenya still imports a huge portion of its textiles, and the sector struggles to get enough capital investment to scale further.

The Broader Benefits: DEI, Sustainability, and Global Appeal

Investing in production-focused solutions at the primary level doesn’t just benefit the economy—it has a ripple effect on other important issues, such as:

Diversity, Equity, and Inclusion (DEI)

By strengthening local industries, we create jobs and opportunities for a broader segment of the population, addressing issues of inequality and exclusion. This is especially important in sectors like manufacturing, agriculture, and technology, where job creation at scale can uplift marginalized communities.

Sustainability

Local production reduces the environmental impact of long supply chains, helping to cut carbon footprints. For instance, processing raw materials locally instead of shipping them overseas for refinement is more eco-friendly. Companies like TotoSci, which recycle e-waste, or Rivatex, which promotes local cotton farming, help Kenya transition to a more sustainable economy.

Attractiveness to Global Funding Mechanisms

Solutions that focus on sustainability, DEI, and reducing carbon footprints align with the metrics that are increasingly prioritized by global investors. By shifting focus from short-term consumption innovations to long-term production and transactional solutions, Kenya can attract more sustainable and long-term investment.

The Next Wave of Kenyan Innovation: Prioritizing Production and Transactions

Kenya does not need permission to prioritize itself—it simply needs to act intentionally. The next phase of Kenya’s growth requires a conscious shift toward strengthening production and transactions, ensuring that what is created in Kenya serves Kenya first.

What Needs to Happen?

? Invest in Local Value Chains: Rather than exporting raw materials, Kenya must invest in processing industries that add value and retain wealth within the country.

? Strengthen Intra-Kenyan Trade: More effort is needed to make trade within Kenya and across Africa seamless, leveraging frameworks like the African Continental Free Trade Area (AfCFTA).

? Develop Capital for Production: Financial institutions should prioritize long-term investment in industries that create jobs and build Kenya’s self-sufficiency.

? Leverage Technology for Efficiency: Instead of just optimizing consumption, Kenyan tech startups should focus on innovations that boost productivity in manufacturing, healthcare, and supply chains.

Kenya’s biggest challenge is not consumption—it is production and exchange. The future of our economy lies not just in how we consume but in how we produce, trade, and sustain economic value from within. By focusing on these foundational elements, Kenya can build an economy that is not just globally competitive but also deeply self-sustaining.