Nairobi Manufacturing Sector Gains From New Industrial Policies

The manufacturing sector in Nairobi is recording significant gains following the unveiling of bold new industrial policies by the national government, signaling renewed momentum for Kenya’s industrial transformation. During a high‑level gathering in Nairobi, Trade and Industry Cabinet Secretary Rebecca Miano announced a strategy to increase manufacturing’s share of GDP to 15 percent by 2027 through the development of county-level industrial parks and value‑chain reforms.At the heart of the policy shift is the expansion of County Aggregation and Industrial Parks (CAIPs), which will provide infrastructure and shared facilities for manufacturing companies across Kenya’s counties, including Nairobi. These parks are designed to support priority value chains—such as cotton, leather, edible oils, dairy, and pharmaceuticals—while also integrating green manufacturing technologies and digital capabilities. In tandem, the Kenya Ministry of Industry has launched a national industrial mapping exercise in Nairobi to gather data on existing factories and capacity, enabling more targeted and efficient policy interventions.The response from the business community has been largely positive. Industry stakeholders believe the reforms will lower barriers to investment, enhance competitiveness, and attract much‑needed foreign direct investment (FDI). Indeed, this vision has already begun to draw international attention: the UK’s Manufacturing Africa program is committing to support Kenyan manufacturers in scaling operations, linking them to capital, advisory services, and export markets.At the same time, the Kenya Association of Manufacturers (KAM) is calling for a more predictable tax regime to fully realize the benefits of this policy push. Looking ahead, Nairobi’s manufacturing sector appears to be on a path to rapid expansion. The combination of upgraded industrial parks, capacity building, and sustainable production—alongside value‑chain development—is expected to boost job creation and increase local value addition. If the vision holds, Nairobi could become a leading industrial hub in Africa, anchoring Kenya’s ambition to modernize its economy and build a competitive, inclusive manufacturing base.