Local manufacturing key to unlocking value from China trade

Local manufacturing key to unlocking value from China trade
Afripeak Expo Managing Director Gao Wei alongside KNCCI National Director Joseph Mutavi Kithu during the Kenya International Industrial Expo and Kenya Investment & Trade Fair 2026/COURTESY

NAIROBI, Kenya, Sep 3 – Kenya must shift its growing trade relationship with China from the importation of finished goods towards local manufacturing, assembly and technology transfer if the country is to derive greater economic value from the relationship, business leaders said Thursday.

The shift, they said, would help Kenya attract investment, create jobs, develop industrial skills and strengthen its manufacturing base while positioning the country as a production hub for the wider East African market.

Afripeak Expo Managing Director Gao Wei said Chinese companies should look beyond supplying the Kenyan market and consider establishing production and assembly operations locally.

“Selling one container of goods is a transaction. Building a partnership, transferring a technology, assembling or producing here, training local technicians and creating jobs that is cooperation, and that is what lasts,” Gao said.

“We encourage our exhibitors from China and other countries to look beyond trade and seriously consider investment, local manufacturing, assembly and technology transfer in Kenya.”

Gao was speaking Thursday during the opening of the ninth Kenya International Industrial Expo and Kenya Investment & Trade Fair 2026 at the Sarit Expo Centre in Nairobi.

The three-day exhibition, which runs until September 5, has brought together Kenyan and international manufacturers, suppliers, investors and traders, including an organized business delegation from China’s Guangdong Province.

Guangdong, one of China’s major manufacturing and trading centers, is expected to provide Kenyan businesses with exposure to industrial equipment, technologies and potential investment partners.

The expo is also showcasing laser engraving, laser cutting and related industrial processing equipment, with applications ranging from manufacturing and metal processing to furniture, construction, packaging and advertising.

Kenya National Chamber of Commerce and Industry (KNCCI) National Director Joseph Mutavi Kithu said strengthening local production and technology adoption would be critical to Kenya’s economic transformation.

“Kenya’s economic transformation will depend on our ability to invest in productive sectors, strengthen local manufacturing, embrace technology and innovation, and expand opportunities for businesses to access both domestic and international markets,” Kithu said.

“Industrialization is not only about large factories. It is also about the thousands of MSMEs, suppliers, distributors, technology providers and service businesses that form the backbone of our economy.”

Kenya has in recent years sought to expand manufacturing and attract investment into productive sectors, while businesses have increasingly looked to international partnerships for machinery, technology and access to markets.

The challenge, however, is converting trade relationships into productive investment and ensuring Kenyan enterprises participate higher up the value chain.

The expo features businesses in manufacturing, construction, logistics, electric mobility, packaging, engineering, agro-processing, equipment supply and insurance.

Organizers say the exhibition will also facilitate business-to-business meetings aimed at connecting Kenyan firms with international suppliers and potential investors.

The focus on local production comes against the backdrop of Kenya’s large trade relationship with China, which remains a major source of imported machinery, equipment and consumer goods.

Organizers said the ultimate measure of the three-day event would be whether the engagements translate into investment, technology transfer, local production and new business opportunities rather than simply sales of imported products.