Kenyan Manufacturers Urged to Embrace Automation to Survive Global Competition
Kenya’s manufacturing sector is at a critical juncture, with industry leaders and government officials issuing a strong call for local firms to rapidly adopt automation and smart technologies or risk being rendered uncompetitive in both domestic and international markets. The warning was delivered at the National Manufacturing Summit in Nairobi, where experts highlighted the urgent need for the sector to transition from labor-intensive models to technology-driven production to enhance efficiency, improve quality, and reduce operational costs. The Principal Secretary for Industry, Dr. Juma Mukhwana, emphasized that automation is no longer a luxury but a necessity for survival in the modern global economy.
The push for automation comes as Kenyan manufacturers face mounting pressure from imported goods, rising production costs, and evolving consumer demands for higher quality standards. Key areas identified for immediate technological upgrade include robotic process automation in assembly lines, Internet of Things (IoT) sensors for predictive maintenance, and artificial intelligence for quality control and supply chain optimization. The choice before our manufacturers is simple: automate or evaporate. We cannot compete with global players using 20th-century technology while they’re leveraging 21st-century innovations, Dr. Mukhwana stated during his keynote address, pointing to successful case studies of local firms that have increased productivity by over 40% through strategic automation.
The response from the manufacturing community has been mixed, with larger, established companies expressing readiness to invest while small and medium enterprises (SMEs) voice concerns about the high initial capital outlay. The Kenya Association of Manufacturers (KAM) has announced plans to establish an Automation Advisory Centre to provide technical guidance and facilitate access to financing for members seeking to upgrade their operations. We recognize the challenge, particularly for our SMEs, but the long-term cost of inaction is far greater than the investment required. We’re working with financial institutions to develop favorable financing packages for automation projects, said KAM Chairperson, Muchai Kunyiha.
Looking ahead, the government has committed to supporting the sector’s technological transformation through fiscal incentives, including tax breaks for companies importing automation equipment and funding for research and development in industrial technology. The Ministry of Investment, Trade, and Industry is also developing a National Automation Strategy to provide a clear roadmap for the sector’s digital transformation. Our vision is to position Kenya as a manufacturing hub for East Africa, and this can only be achieved through embracing cutting-edge technology that enhances our competitive advantage, the Principal Secretary concluded, signaling a paradigm shift in the country’s industrial policy that prioritizes technological adoption as the key to sustainable growth.