Automation and adoption of new technology has been termed as the only way for local manufacturers to remain competitive in an ever changing global market.
Information Communications and Technology (ICT) Cabinet Secretary (CS) Joe Mucheru said in view of globalisation that has created pressures and cut throat competition, there was need to develop strategic and inter disciplinary approaches in the growth of our manufacturing sector.
The CS made the remarks in a speech read on his behalf by the government spokesperson Col (Rtd) Cyrus Oguna during the unveiling of a report on Status of Manufacturing Sector in Kenya on Wednesday.
Mucheru said the collaboration between academia and industry in research, innovation and technological advancement is key in addressing challenges in the manufacturing industry.
“As government we recognise the importance of ICT in stimulating national development particularly creating a platform for financial inclusion for all sectors of the population in economic development,” said Mucheru.
He added that in the government’s Big4 agenda, manufacturing which contributes approximately 9.6 percent to the Gross Domestic Product (GDP) is a priority sector.
The goal, he added, was to get the sector going and support more on the GDP and believes that ICT among other sectors will play a major role in this.
“According to research less than 10 percent of Small and Medium Enterprises (SMEs) are fully automated meaning most use manual systems which are inefficient and unreliable hence not impressive at all. It is important to integrate ICT in order to increase efficiency and maximise on quality and quantity,” advised Mucheru.
The CS said as part of the strategy to develop a digital economy, the government had made broadband and access to internet connectivity a priority across the country in order to bridge the technological divide and increase uptake of innovative solutions.
“Our objective is to have broadband connectivity at a walking distance even in rural areas. Already we have laid down over 6, 000 kilometres of the national optic fibre cable infrastructure across the country with connectivity done to all county headquarters for both the national and county offices and other key government installations such as police stations, health facilities and all public offices,” he explained.
“The objective is to develop a robust ICT infrastructure to attract investors and private players in any part of the country and avail government services online,” said Mucheru.
State Department of Investment and Industry Principal Secretary Betty Maina said the manufacturing sector had been increasing on a year to year basis and has doubled in the last 10 years.
Maina said the focus is to grow manufacturing to a target of 15 percent contribution to the GDP through diversification of products and increase their value content.
“Kenya seeks to have robust, diversified and competitive manufacturing sector but there are factors which have led to our lack of competitiveness in manufacturing and the government is addressing them,” she said.
The PS noted that adoption of technology in key manufacturing areas will reduce and eliminate the factors that hinder competitiveness and yield the desired results.
“Results show that over 85 percent of companies are either fully automated or semi-automated while a majority still hold on to outdated production systems,” said Maina.
She challenged manufacturers to automate their production saying, “Even if the government subsidizes manufacturing, cuts the cost of electricity and improve roads and logistics, with outdated production system you will still not be competitive.”
By Joseph Ng’ang’a
