Time for Kenya to Shift Gear and Scale Up Industrialization

Looking at him closely as he speaks, it is hard not to be drawn to his lips. He speaks with a slight boisterous curve in the edges of his mouth, reminiscent of a horse chewing cud while pulling a cart.

His words, however, transport you from the old invention of the wheel right up to the modern-day business environment papered with its cutting-edge technologies.

Dr Juma Mukhwana, PhD, CBS is the Principal Secretary, of the State Department of Industry in the Ministry of Investments, Trade and Industry (MITI). He has held the position since December 2022. His words paint life-size flashbacks of the pre-historic Industrial Revolution, bringing them to life as though he had witnessed them firsthand.

“In Kenya, like the rest of Africa, we have yet to invent the wheel. We have not even scratched the surface of the industrial revolution,” he asserts, adding: "While the developed world is experiencing their fourth or even fifth industrial revolution, Kenya and much of the developing world have yet to embark on the first."

Dr. Mukhwana traces the journey of the Industrial Revolution, beginning in Great Britain in the late 18th Century, before moving to the United States in the early 19th Century, largely driven by Europeans. This wave swept through Germany, France, and then to Asia, with Japan taking an early lead, followed by Russia, China, and most recently, India.

“Who will industrialize Kenya? Do you want the Europeans to come and do it for us?” he challenges, emphasizing that Kenya has a highly skilled workforce, fully capable of developing its industries without foreign input. His remarks came during the official opening of the Kenya Geothermal Congress 2024, convened by the Geothermal Association of Kenya on July 16, in Nairobi. He was in his element, urging energy sector leaders to spearhead Kenya's next phase of industrialization.

“One major challenge in Kenya is that we are primarily consumers, consuming what we have not produced,” Dr. Mukhwana continues, urging Kenyans to rise to the occasion and venture into manufacturing. “Despite being a devoted Christian, I am sometimes disturbed by the mushrooming churches in Kenya and other African countries at the expense of business enterprises. We must rethink and reverse this trend and instead focus on building more industries even as we continue to pray,” he said.

Dr. Mukhwana envisions a future where Kenyan entrepreneurs and startups shift their focus to industrialization, even if it means starting with small manufacturing workshops. “We should not be importing things like nails, kibiriti, and soap. These are items we can easily manufacture locally. We need to harness our local talents to produce these goods for both the domestic and foreign markets,” he asserts.

He highlights KenGen Kenya 's efforts, particularly the establishment of the Green Energy Park in Olkaria, Naivasha as a shining example of Kenya's industrialization agenda. However, Dr. Mukhwana was quick to point out the crucial role of government in the industrialization process. He emphasizes that the government's role is to develop and implement policies that create a conducive environment for businesses to thrive.

To this end, he mentions that the government has established Industrial Parks and Special Economic Zones to offer industries a favorable environment. These facilities are strategically located near geothermal development areas to benefit from captive power at special tariffs and utilize steam and brine for various industrial applications, including agro-processing, leather, cement, and steel manufacturing, among others.

“The government is not a good businessman; we cannot expect the government to set up industries and manufacturing plants. This is a task best suited for the private sector,” says Dr. Mukhwana.

Currently, Kenya's industrial sector contributes about 17% of the country's Gross Domestic Product (GDP), with the manufacturing sub-sector being the largest contributor at about 9%. In comparison, South Africa's industry contributes around 30% of the GDP, while advanced economies like China see up to 40% of their GDP coming from industry. This stark contrast underscores the need for Kenya to scale up its industrialization programs.

Today, Kenya stands at a crossroads with pressure and expectations increasing daily from a wide mix of stakeholders and the path it chooses will determine its industrial future. As Dr. Mukhwana eloquently argues, the time has come for Kenya to shift gears and accelerate its journey toward industrialization, harnessing its inherent potential and the strength of its people to transform from a consumer-driven economy to a manufacturing powerhouse.

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