Prioritise local investors alongside FDI calls- KAM CEO Tobias Alando
Question: What are your aspirations as you take up this role and how do they link with the overall goals for the sector?
Answer: My aspiration is to see a robust manufacturing sector that not only creates jobs and wealth. A sector that produces competitive goods for domestic, regional and international markets. I also believe that this can only be achieved through progressive changes to policies to create a business environment that attracts new investors into the sector whilst finding new ways of sustaining the existing investors.
Sometimes we focus too much on attracting new foreign investors and forget the investors we already have in the country. My priority is to focus on these investors who are already here. Furthermore, we have witnessed in the past where only a few people are involved in the discussion on manufacturing. I aim to change this since we need more people especially the youth to actively participate in manufacturing.
Take us back to your journey at KAM. What have you been up to and what have been your biggest achievements?
I joined KAM in 2005 as a Sector Officer where I was tasked with understanding sector-specific operations and challenges with the aim to drive fact-based policy advocacy. I transitioned from this role two years later following my appointment as an Executive Officer, at Coast Region where I was tasked with recruiting new members and engaging existing ones at the Coast Region to support KAM’s advocacy agenda from a region’s perspective. In 2010, I was appointed the Head of Membership and Governance where I oversaw member recruitment and retention as well as governance services, and in 2022, I was appointed to the Chief Operating Officer role where I was tasked with managing the Association’s day-to-day administrative and operational functions.
Among the notable achievements under these roles have been expanding KAM’s membership base, from less than 300 to now more than 1,300, and leading the development and execution of strategies for membership growth and retention, resulting in a 90 per cent membership retention rate. Additionally, I have supported the Association in enhancing operational efficiency and organizational sustainability, resulting in a financially sustainable organization. Lastly, I promoted a good company culture, supported by highly skilled staff who continuously render top-notch services to our members.
The business environment has been challenging in the past three years, what are the initiatives to address some of these challenges in the manufacturing sector?
The business environment has been tough for the manufacturing sector for the last several years, largely due to high taxation, regulatory overreach, and unpredictable policies among other challenges affecting business operations. As an organization, we have been advocating for the national and county governments to improve the business environment for local industries to thrive. At the same time, we have been offering our members various services to enhance their firm-level competitiveness.
For instance, adapting green manufacturing and sustainable waste management practices. I believe there is still room for improving the business environment.
What do you think needs to be done to make the industry more vibrant, grow and achieve the targeted 20 per cent contribution to the GDP by 2030?
Increasing the manufacturing sector’s contribution to GDP to 20 per cent from the current 7.6 per cent provides the nation with an opportunity to create 1 million jobs directly, increase manufacturing value add and triple government revenue.
To achieve this, there is a need to create stable and predictable policies in the country. Investors plan based on policies in the country hence, sudden changes in policies impact the operations of a business. A predictable policy environment allows for new investors whilst providing a space for existing investors to thrive. Bringing on board more people into the manufacturing space is also a great avenue to increase the sector’s contribution, however, there is a need for policies that encourage such entrants into the space.
Where do you foresee the manufacturing sector in the next five years under your leadership?
KAM has an ambitious plan to drive the manufacturing sector’s contribution to Gross Domestic Product (GDP) to 20 per cent by 2030. I will be working closely with all stakeholders as we seek to realize this ambitious goal. Presently, the sector faces a myriad of challenges that hinder its growth including high taxation, unpredictable policy environment, and high cost of raw materials. I am hopeful that by the next five years, we shall have a robust manufacturing sector that not only produces goods for the country but also international markets, more so with the expanding market opportunities within the continent and around the world.
I am also keen on seeing the Association grow to become a thought leader on all matters of manufacturing. Generally, business member organizations grow from a club to a secretariat, then a professional organization and lastly a thought leader. I believe there are various opportunities for us to permanently become a thought leader, backed by highly qualified and innovative colleagues and financial sustainability.
You have been an Acting CEO twice, more of like coming close to the seat, but watching it pass over you. What would you say was your motivation, to still hold on?
Like it is said, opportunity and chance come at different times, for some it comes in the morning and for others it comes in the afternoon. In 2022, it was my morning and now it is my afternoon.
I am a strong believer in patience, which I consistently seek to instil in my colleagues as well as my family. There are always diverse factors that do not allow you to get certain roles or be in a specific place in life but that does not mean it is a permanent situation. I believe that with patience and an understanding of the dynamics that may sway us from our ambitions, we are a step closer to realizing them.
In the current conversation relating to business reforms, how soon do you think the manufacturing sector will see the changes implemented?
We have had various engagements with the government, through the Ministry of Investments, Trade and Industry, on manufacturers’ concerns regarding the business environment. We hope that these engagements will start bearing fruits in the new year.
As KAM, we recognize that comprehensive legal reforms are key for enhancing Kenya’s competitiveness, improving the business climate, and fostering sustainable economic growth through investment, industrialization, and trade. However, some measures risk undermining the sector’s competitiveness. We therefore continue to advocate to the government the need to address manufacturers’ concerns without hurting the sector.
As an organization that is a great contributor to the county’s GDP, do you feel as though the Government listens to you?
With 65 years of experience, KAM has built a strong rapport with the government, and I believe this has created a platform for engagements on diverse aspects that affect the manufacturing sector. The manufacturing sector continues to enjoy open communication channels with the government. This is no small feat. This avenue allows the sector to raise and address some of the pertinent issues affecting the operations of the manufacturing sector. There are indeed opportunities to expand this relationship. Specifically on collaborations between government and manufacturers in developing policies and regulations that support local industries to grow.
Parting shot as the year begins?
As KAM, we aim to create prosperity for the nation through sustainable industrialisation as we believe that the manufacturing sector is the key to unlocking Kenya’s socio-economic challenges. As I step into this role, I look forward to engaging all stakeholders to driving manufacturing sector growth as this is the surest way of transforming the nation. it has been repeatedly pointed out that they’re completely at odds with reality. How do you think that will work out if, say, his tariffs don’t cure trade deficits or his plans for mass deportation have the catastrophic economic effects many analysts have predicted?