Lobby pushes for measures to link agriculture, industry

The government has been petitioned to put measures that can create a nexus between agriculture and industry to spur agro-processing.

Kenya Association of Manufacturers (KAM) said the link, which is largely missing, has starved members of raw materials leading to less production, a factor it said will affect the sector’s contribution to the gross domestic product (GDP) from the current 7.2 per cent to 20 per cent by 2030.

Speaking at the first-ever SMEs convention by the manufacturers, KAM chairman Rajan Shah said the linkage will among other things maximize local agro-based inputs, a ripple effect on the economy.

“By providing a space where manufacturing SMEs are competitive, have access to regional and international markets, and maximize local agro-based inputs, then, they will have a ripple effect on the economy. Subsequently, accelerate the realization of our goal to increase the manufacturing sector’s contribution to the GDP from the current 7.2 per cent to 20 per cent by 2030,” Shah said.

His sentiments were echoed by Industry Principal Secretary Juma Mukhwana, who called for the strengthening of the value chain between agriculture and industry to wean Kenya from over-reliance on imported raw materials and intermediate goods to produce manufactured products.

Cooperatives and Micro, Small and Medium-sized Enterprises (MSMEs) Cabinet Secretary, Simon Chelugui said whereas Kenya has developed programmes and initiatives to support MSMEs over the years, their potential has not been fully tapped.