Priority Value Chains
Edible Oils
The edible oil sub-sector is a multimillion investment and comprises manufacturers of palm, corn, sunflower, canola, and soya bean oils. Currently, the industry has an installed capacity of 7,160 MT and employs approximately 10,000 people directly.
The edible oil sub-sector is a substantial contributor to overall tax revenue.
Building and Construction Materials
Kenya’s Metal sector (iron & steel) forms approximately 13 percent of the manufacturing sector, with an overwhelming majority of the sector’s products used in the construction industry. Direct and indirect consumption of steel in Kenya is projected to increase as the country embarks on the development activities as envisioned in Vision 2030 and the Bottom-Up Economic Transformation Agenda.
The Iron and Steel industry in Kenya forms about 13 percent of the manufacturing sector, which in turn contributes significantly to the GDP.
Textile
The textiles and apparels sector is the most capital intensive sector in terms of investment. This sector has the ability to create a large number of employment opportunities within a short duration of time. This explains why the current government at the national and county is giving a special focus to the sector. The development of the sector’s farm–fashion value chain presents the country with immense opportunities in cotton farming, textile mills and apparel/fashion industry.
The sector is considered as a creator of mass employment along the value chain with low to high skill sets. A fully developed value chain has the capacity to employ about 10% of the country’s population. Additionally, cotton farming and apparels manufacturing are very labour intensive; thus being a source of much-needed employment opportunities. The value chain is also an important driver of inclusivity as it employs women in excess of 60%.
The textiles and apparels sector is currently a critical foreign exchange earner and in Kenya as at now is the largest exporter of apparel under AGOA and more investment are still expected given the improvement of the economy.
With the changes in the global apparels sourcing supply chain in the world, Kenya has been able to attract a substantial number of world buyers and these figures can grow when we enhance our competitiveness and diversify our markets. The sector provides an opportunity for the enhancement of investment within the country and region through forwarding and backward linkages with other economic sectors.
Leather
The current state of the leather sector is characterized by over 85% of leather export being ‘wet blue’ leather, implying a huge potential for the export of leather products through the value addition of this raw material.
The value chain for this subsector comprises of Production of livestock (Animal Husbandry); slaughterhouse and preservation of hides and skins; tannery; production of leather goods; marketing and distribution. These are the areas that will be analyzed to diagnose the problems and develop interventions to enhance productivity and competitiveness for the export market.
