If prioritised through proper funding and complete execution, these parks will transform Kenya’s economy by creating thousands of jobs while improving its global market position.
The economy has relied heavily on agriculture and services for years, yet industrialisation remains the missing link. Manufacturing represents 7.6 percent of Kenya’s gross domestic product, much lower than that of nations with established industrial systems.
Due to the low establishment of local industries, the country depends on foreign imports, which generate trade deficits and restrict employment opportunities.
By embracing industrialisation, Kenya can:
First, boost employment-industrial production needs a variety of trained personnel such as professional engineers and factory operatives, reducing youth joblessness.
Second, enhance value-addition—local processing of unprocessed materials leads to higher revenue and better market position against competitors.
Third, strengthen local enterprises—the industries generate supply networks that boost local business development, including transportation services and equipment supply industries.
Fourth, reduce import dependency-nationwide local manufacturing operations decrease the need for imported products, strengthening foreign currency reserves.
Through the CAIP initiative, counties attain increased economic power to foster local development among multiple industrial locations.
The industrial parks operate as manufacturing and innovation centres that optimise resources based on specific county assets.
Success in industrial development depends on coordinated efforts among government officials, investors, and county authorities who pursue industrial progression. Kenya requires immediate action because its future success closely rests upon these developments.
Unfortunately, Kenya relies on the formal sector to raise revenues, with many small traders earning millions without paying income tax.
This creates a disparity that upsets the principle of equity in taxation.
We laud the Kenya Revenue Authority (KRA) for creating a small traders division to widen the tax base and boost revenues from small businesses. Previously, there was no dedicated office within the KRA for small traders, unlike the Large Taxpayers Office, Medium Taxpayers Office and Public Sector Division.
It is also unfair when ordinary conversations are often dominated by the pain of taxation, creating the need to evenly share the tax burden.
Since President William Ruto ascended to power in August 2022, the government has raised a host of taxes while also introducing new ones. Taxes on salaries have gone up, the sales tax on fuel has doubled and workers are also paying a new housing levy and more for health insurance.
Mr Ruto’s message is that if people want better public services and a reduction in the country’s debt burden, they have to pay up. This sacrifice demands that individuals with the same income pay equal taxes. Those with different levels of income should pay different amounts.
Unfortunately, workers and business owners in the formal sector have carried the heavier part of the burden.
It is time smaller traders and workers in the informal sectors carry their fair share of the tax burden.
The industrial parks serve as research centres, leading to the advanced development of new products and technologies. Parks enable small and medium enterprises to access common facilities, substantially decreasing operating expenses and boosting business expansion.
The development process of industrial parks requires upgraded roads and electricity and water services to create an improved infrastructure that benefits all surrounding neighbourhoods. Foreign investment, together with local capital, becomes more accessible to regions that develop industrial infrastructure, which makes Kenya a favourable destination for manufacturing interests.
Completing County Aggregation and Industrial Parks remains Kenya's most important factor in achieving successful industrial development. The government should expedite these projects through immediate action by providing enough financial resources to construct essential infrastructure, including roads, electrical facilities, and water distribution systems.
Established industries within these parks will receive tax breaks as an incentive from the government. Ensure a consistent policy framework to provide investment assurance for industrialists and investors.
The government should enable public-private partnerships (PPPs) that permit private sector involvement for resource and expert support.
These developed parks possess the potential to generate millions of employment opportunities, thus lowering joblessness and establishing lasting economic progress.
The leather industry is a promising sector that Kenya needs to intensify its development. Kenya's large livestock population —over 18 million animals—results in abundant leather raw materials.
However, the country exports most of its hides and skins in raw form, missing out on the lucrative global leather market worth over $100 billion annually.
The leather-processing potential of pastoral counties such as Laikipia County grows stronger due to its large livestock size. By making investments in tanneries and factory production for footwear and manufactured leather goods, these countries can contribute immensely to economic growth.
The leather industry can generate thousands of direct and indirect jobs across the value chain. Additional export revenue can be collected by producing high-quality finished leather products.
Local economic growth is enhanced by reducing reliance on imported leather goods, keeping money within the local economy. Rural development will be improved by providing farmers with stable markets for hides and skins.
Kenya can reach its maximum leather industry potential by establishing more tanneries to process raw hides locally. The country should revise its policies to stop hides from being exported while promoting regional value creation at home.
Workforce training for processing leather and product design techniques should be provided. Small leather manufacturers should get the necessary capital through available funding resources.
Kenya’s industrialisation is not just an option it is a necessity for sustainable economic growth and job creation. The County Aggregation and Industrial Park (CAIP) program represents an excellent opportunity for Kenya to transform its manufacturing sector completely alongside business innovation and homegrown economic independence.
Industrial park completion initiatives will transform Kenya's current situation from that of a good importer into that of an industrial producer, consequently generating increased employment and developing national economic strength.
The leather industry investment, along with high-potential sector development, will propel economic transformation, particularly in counties like Laikipia, where natural resources align with industrial potential
Success in industrial development depends on coordinated efforts among government officials, investors, and county authorities who pursue industrial progression. Kenya requires immediate action because its future success closely rests upon these developments.
The writer is an economist and a business consultant
