Manufacturers urged to embrace technology, financing to boost AfCFTA competitiveness

Manufacturers urged to embrace technology, financing to boost AfCFTA competitiveness
KPA

NAIROBI, Kenya, June 18 – Kenyan manufacturers have been urged to invest in modern machinery, technology transfer and innovative financing solutions to improve productivity and compete effectively under the African Continental Free Trade Area (AfCFTA).

The call dominated discussions at the Africa International Construction Machinery, Mining Machinery, Agricultural Machinery, Automobile & Motorcycle Parts, Electromechanical and Hardware Products Expo (AICMEC 2026), which has brought together more than 200 companies from Africa and China.

Industry players noted that access to modern equipment remains crucial as Kenya seeks to expand manufacturing’s contribution to gross domestic product (GDP) from the current 7.1 percent to 15 percent by 2027.

Speaking during the opening ceremony, Principal Secretary for Industry Juma Mukhwana said the country must strengthen its industrial base by investing in advanced production systems and manufacturing technologies.

“Kenya is open for business, offering a stable, innovative environment for you to manufacture and grow. I urge all stakeholders to use this Expo as a platform for forging partnerships and exchanging knowledge to accelerate industrial transformation,” said Mukhwana.

“Our goal is to raise the manufacturing sector’s contribution to GDP to 15 percent by 2027.”

The push comes as Kenya positions itself as a regional manufacturing hub amid increasing competition for investment across the continent under AfCFTA, which seeks to create a single market for goods and services across Africa.

Government data shows the economy expanded by 4.6 percent in 2025, while the construction and mining sectors grew by 6.8 percent and 14.9 percent respectively, driving demand for industrial equipment and infrastructure.

Erick Rutto, President of the Kenya National Chamber of Commerce and Industry, said local manufacturers must improve productivity and increase value addition to remain competitive in both regional and international markets.

The expo is expected to connect businesses with machinery suppliers, financing providers, operator training services and after-sales support, helping firms modernize operations and expand production capacity.

Kenya currently hosts more than 350 Chinese companies, while bilateral trade between Kenya and China reached about Sh598 billion in 2024, highlighting the growing economic ties between the two countries.