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Article #113: Kenya Foreign Direct Investment manufacturing industry

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Manufacturing sector is an area where maintenance of electronic goods are in
investment opportunities exist. Initially operation and are rapidly increasing
developed under the import substitution their scope of activities to meet the
policy, there has now been a shift to growing demands of the industry.
export oriented manufacturing as the Key opportunities for direct investments,
thrust of Kenya's industrial policy. The joint-ventures and subcontracting exist
sector plays an important role in adding in assembly of a wide range of electronic
value to agricultural output and goods in Kenya, especially within the
providing forward and backward linkages, Manufacturing Under Bond scheme and
hence accelerating overall growth. Export Processing Zone Programmes.
The manufacturing sector now comprises of These include the production of:
more than 700 established enterprises and - Consumer electronics, such as colour
employs directly over, 218,000 persons as televisions, Video Cassette Recorders
at the year 2000. A wide range of (VCRs), printers, floppy disk drives and
opportunities for direct and Compact Disk Roms (CD-Rs);
joint-venture investments exist in the - Telecommunication equipment, such as
manufacturing sector, including printed circuit boards, and transmission
agro-processing, manufacture of garments, equipment; and
assembly of automotive components and - Support items such as cables, cords,
electronics, plastics, paper, chemicals, die casting and metal plating.
pharmaceuticals, metal and engineering With a labour force which is
products for both domestic and export well-equipped to meet the labour skill
markets. requirements for the industry and the
Paper Products relatively large domestic and export
Kenya has an integrated pulp paper mill market potential of electronics in the
plant producing paper and paper board region, Kenya offers an enormous
from renewable forest products. However, potential for the manufacturing and
the country imports coated white lined assembly of electronic items.
chipboard and other boards for packaging, Plastics, Chemicals and Pharmaceuticals
newsprint, printed paper and other types The plastics industry in Kenya is
of paper. Investment opportunities exist well-developed and produces goods made of
in the production of paper from other raw polyvinyl chloride (PVC), polythylene,
materials such as bagasse, sisal waste, polystyrene, and polypropylene. All
straw and waste paper. materials are imported in the form of
Textiles and Apparels granules.
Textile, Garment and Apparel A large number of pharmaceutical
manufacturing has a very high potential formulations are produced locally in the
in Kenya. The basic raw material inputs form of tablets, syrups, capsules, and
such as dyes and chemicals are imported, injectables, but the bulk of
as are all textile equipment and most pharmaceuticals is imported. There is
spare parts. Investment opportunities room for additional investment in the
exist under the Manufacturing Under Bond pharmaceutical industry.
scheme and in the Export Processing zones Many attractive investment opportunities
for the production of items such as yarn in chemicals, pharmaceuticals and
and garments. fertilizers remain unexploited. These
Metal and Engineering Works include the production of PVC granules
Kenya has a basic metal sector making a from ethyl alcohol; fomaldehyde from
variety of downstream products from local methanol; melanine and urea; mixing and
and imported steel scrap, steel billets granulating of fertilizers; cuprous
and hot rolled coils. Kenya imports steel oxychloride for coffee bean disease;
billets, coils, wire rod and wires, steel caustic soda and chlorine based products;
plates, sheets, steel scrap and pig iron. carbon black; activated carbon;
The country possesses a broad-based metal precipitated calcium carbonate; textile
products sector with various independent dyestuff; ink for ball-point pens; and
engineering, foundry and metalwork gelatine capsules.
workshops. Opportunities exist in the Mining and Mineral Products
development of a nucleus foundry making Opportunities exist in the production of
precision castings that are then glass as the country is not
processed into precision components. self-sufficient. A few manufacturing
Vehicle Parts and Assembly units produce ceramic pottery and tiles,
The motor vehicle component industry is however, substantial quantities of
rapidly developing to supply the needs of ceramic pottery, tiles, sanitary-ware,
a few motor vehicle assemblers to meet and insulators are imported. Investment
certain local content requirements. potential exists in prospecting and
Opportunities exist for manufacture of mining of other minerals such as gold,
components for use by local assemblers precious stones and petroleum.
for domestic market and for export to Wood and Wood Products
regional markets. Making use of renewable resources,
Electrical Equipment investment opportunities exist for
Investment potential exists for the production of high quality and hand
production of motors, circuit breakers, carved furniture for export, high density
transformers, switch gears, irrigation board from saw dust for the domestic
pumps, capacitors, resistors, insulation market, high quality veneers, wooden
tapes, electrical fittings and integrated toys, sporting goods such as cricket bats
circuit boards for both the domestic and and rackets for export, and other
export markets. specialty items. Recognizing the
Electronics importance of environmental preservation,
Although Kenya's electronic industry is the Government pursues an active
still at its infancy, a number of firms re-afforestation programme.
in the assembly, testing, repair and






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