The inauguration of President William Ruto is not just a formal transition to office but rather, a sense of a new beginning following a period of heavy political campaigns and a wait-and-see approach by many Kenyans.

All eyes are now on the new government, wanting to see what the President and the elected leaders will prioritise. 

Securing the future of industry is at the heart of our advocacy. This is why the Kenya Association of Manufacturers (KAM) continues to engage the government, among other stakeholders, on the broader national goal and ambitions of Vision 2030.

Bearing in mind the unique views of issues borne out of years of experience in the market and engagement with stakeholders, KAM has singled out four crucial aspects that the new government must prioritise.

First, Kenya’s global competitiveness — its ability to sustainably produce goods and services for which there is a market, and at a price and quality that the market is willing to pay for. Competitiveness may be local or regional, and is now increasingly global.  

On this front, the government must focus on reducing the debt burden by planning its expenditure based on available revenue.

An unpredictable tax regime, at times, arising from the need to raise revenue to meet expenditure, hinders the business community from making long-term investment plans.

Another concern is the heavy regulatory burden on both citizens and businesses. We urge the government to reduce the number of regulations, bring down the cost and time spent on compliance, and consolidate regulators at the national and county levels. It is also critical that the government strengthens our supply chains to reduce reliance on imports and create an enabling environment for existing businesses to thrive and compete regionally and globally. 

Second, export-led growth. The manufacturing sector will not grow solely by relying on domestic markets. This calls on Kenya to leverage on products where we have a comparative advantage to grow our exports, and can be realised by removing all export duties, levies, and charges, providing more tax concessions and operationalising existing trade agreements that provide export opportunities. This will enable us to improve our balance of payments and foreign currency supply and enhance trade within the East African Community (EAC) and the Africa Continental Free Trade Area (AfCFTA). 

Third, agriculture and agro-processing. The agricultural sector is key to creating equitable and sustainable growth for our people. It can also lead to the economic transformation of Kenya if farm productivity is raised and linked to manufacturing through agro-processing, agro-based manufacturing, and financing.

To realize this, we must consider two factors: One, increasing the productivity of crops that impact our food security to bring down the cost of finished goods, subsequently, lower the cost of living.

Two, identifying crops with potential for value addition and exports.  We recognise that Kenya has a lot of opportunities to strengthen local value chains.

Lastly, SMEs. The government is progressively dismantling one-size-fits-all approaches and finding more nuanced ways to intervene and uplift micro, small and medium businesses. However, there remains a gap between the good intentions to support SMEs to thrive and understanding their needs.

Case in point, the regulatory and tax environment in which we operate. We call on the government to create an enabling environment to drive the competitiveness and productivity of SMEs and provide incentives to assist them venture into local, regional and international markets.

We hope that moving forward, Kenya will be a better place for citizens and investors. This includes transforming Kenya into a competitive manufacturing base that guarantees a strong economic foundation, productive jobs and purchasing power for citizens.

The writer is the chairman of Kenya Association of Manufacturers (KAM). He can be reached on [email protected].