Manufacturers across Kenya are pressing the government for a comprehensive stimulus package as the sector grapples with declining sales and escalating borrowing costs. A recent survey conducted by the Central Bank of Kenya (CBK) revealed that 69.2% of manufacturers have experienced significant drops in sales, production volumes, and demand orders in recent months.
“The current economic climate has put immense pressure on our operations,” said Peter Mwangi, CEO of KenTech Industries. “We are facing reduced consumer demand while contending with high interest rates that make it difficult to access affordable financing. A government stimulus would provide much-needed relief and help stabilize the industry.”
The CBK survey highlights that weak consumer demand, attributed to reduced purchasing power and economic uncertainties, has been a primary driver of the downturn. Additionally, high borrowing costs have limited manufacturers’ ability to invest in expanding and upgrading their operations.
“Access to affordable credit is essential for maintaining production levels and sustaining employment,” noted Susan Otieno, chairperson of the Kenya Association of Manufacturers. “Without intervention, we risk widespread job losses and further contraction of the manufacturing sector, which is a backbone of our economy.”
In response to these concerns, several industry leaders are proposing targeted measures including tax reliefs, subsidized loans, and investment in infrastructure to lower operational costs. They argue that such initiatives would not only revive the manufacturing sector but also stimulate broader economic growth.
“We are open to collaborating with the government to develop effective strategies that will rejuvenate the sector,” added Joseph Karanja, managing director of EcoBuild Enterprises. “Investing in manufacturing has a multiplier effect that benefits other industries and contributes to national development.”
Government officials have acknowledged the challenges faced by manufacturers and indicated that discussions are underway to address the situation. “We recognize the critical role of the manufacturing sector and are evaluating various options to support its recovery,” stated Treasury Cabinet Secretary, Margaret Njeri. “Our goal is to implement solutions that will have lasting positive impacts on the economy.”
Economic analysts warn that timely intervention is crucial to prevent further decline. “A well-structured stimulus package can help reverse the negative trends and set the stage for sustainable growth,” commented economist David Kamau. “Delay in action may lead to prolonged economic difficulties and hamper Kenya’s long-term development goals.”
