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The manufacturing sector grew at a slower 2.7 per cent last year compared to 7.3 per cent registered in 2021 amid local and global economic shocks.

This saw the sector’s volume of output expand by 3.8 per cent from a growth of 6.5 per cent in 2021, to increase its share to Gross Domestic Product (GDP) by 7.8 per cent in 2022.

Data from the Economic Survey 2023 attributed the slower growth to the effects of Covid-19 pandemic, general election jitters, high inflation, high production costs, competition from imported goods and depreciation of the shilling against major currencies.

During that period, the shilling has been on a steady decline, and unfortunately, there is no indication of recovery in the near future.

Motor vehicles, trailers and semi-trailers, processing and preservation of fish and basic metal products registered major growths in the volume of output last year.

During the period under review, motor vehicles, trailers and semi-trailers sub-sector registered a production growth of 25.8 per cent, mainly attributed to a 3.8 and 21.9 per cent increase in the production of bodies for motor vehicles; and trailers and semi-trailers, respectively. Cement production grew by 5.5 per cent from 9,247,700 tonnes in 2021 to 9,754,000 tonnes in 2022.

The increased production was occasioned by expansion by producers who wanted to meet the increased demand in the construction sector. The quantity of manufactured food products, however, registered a decelerated growth of 1.1 per cent in 2022 compared to a growth of 3 per cent in 2021. This was mainly due to reduced production as a result of drought experienced during the year which affected the supply of raw materials for most agro-based industries.