Counties to lead manufacturing agenda

In order for Kenya to reap from devolution, we must begin to look at counties as the engines to drive our economic growth.

They have to be our first stop in the quest to build strong governance structures to provide efficient social services.

Last year’s elections gave a clear indication that the functions of the devolved units have become more pronounced.

It is also evident that political tensions will continue to be made worse by socio-economic inequalities, if the county leadership does not create equity and consequently equality.

There is no better time to harness the potential of the manufacturing sector.

VISION 2030
The role of manufacturing in creating productive and sustainable jobs, through creation of industries, expansion of existing businesses, boosting the retail sector, enhancing the services sectors, building value chains and so forth, is evident in stronger economies throughout history.

We should make manufacturing our priority development pillar upon which all other economic goals are anchored.

The industrialisation agenda must be spearheaded by county governments so that it takes root as a national agenda towards the achievement of Vision 2030.

Many counties have not given as much emphasis to the industrialisation agenda in their development plans.

BUDGET

The Public Finance Management Act requires county governments to set aside 30 per cent of their budget allocations for development.

However, the Budget Policy Statement 2018 review of the development expenditure for the past five years shows that actual development expenditure barely hits the minimum mark, except for 2016/17, in which it was only very slightly surpassed.

Last year, we identified 10 priority areas for the manufacturing sector.

These were guaranteed to increase jobs, promote exports, enhance productivity and attract more investments.

During the gubernatorial election debates, each county picked what was key for them among these priority areas.

INVESTMENT
This year, the Kenya Association of Manufacturers has consolidated the 10 priority areas into five pillars in the Manufacturing Priority Agenda for 2018.

They include creating a competitive environment and level playing field for local manufacturers, promoting exports, developing policies and institutional frameworks to nurture industrial growth, with a special focus on SMEs and skills development.

County governments can drive industrial growth, creating jobs for youth and a conducive environment for innovative ideas to attract more investments.

The main impediment to growth and expansion of investments has been the multiple fees levied on businesses that transact across counties.

We need not only harmonised taxation, but also good incentives for business growth.

NATURAL RESOURCES
Counties also need to leverage their natural resources to foster healthy competition among themselves as to who can attract more local and foreign investment.

Each county has something unique to offer, and success will depend on their ability to position themselves as “open for business”.

The most visible natural resource is land.

There is a need to set aside land specifically for industrial use, for example, special economic zones, industrial parks, or even incubation hubs?

Devolution can distribute wealth and resources, whilst entrenching a sense of belonging and ownership.

This will be possible if we build a strong manufacturing base in every county.

Ms Wakiago is the CEO of Kenya Association of Manufacturers and the UN Global Compact Network Representative for Kenya. [email protected]