This year’s Africa Industrialisation Day, marked on November 20 under a theme centering on Sustainable Industrialisation, Regional Integration and Innovation, offers Kenya a moment to reflect on how deliberate deployment of sustainable practices catalyses sustainable industrial growth.
Kenya stands at an inflection point where sustainable industrialisation is no longer aspirational-it is the decisive pathway to securing our global competitiveness.
A key enabler of industrialisation is sustainable energy infrastructure. Data from the Energy and Petroleum Statistics Report for the Financial Year ending June 30, 2025 by the Energy and Petroleum Regulation Authority (Epra), shows that of the total power generated that year, renewable power accounted for 80.17 per cent.
Of this, geothermal was at 39.51 percent, hydropower 24.21 per cent and wind power at 13.18 percent while utility scale solar installations contributed 3.27 percent.
To enhance this, the government has put in place policies to generate 100 percent of the electrical energy from renewable energy sources by 2030.
In tandem with this is manufacturing, which is a major energy consumer and a driver of industrialisation through trade facilitation. Kenya’s manufacturing sector contributes about 7.3 percent to the GDP, as of 2024, a figure that has declined from 11.3 percent in 2010 according to the Kenya Association of Manufacturers.
Only a stable, predictable, and innovation-friendly regulatory environment can unlock the potential of our manufacturing sector and protect it from existential threat of illicit trade.
Achieving this goal, especially for the country’s growing private sector, demands that systemic constraints key to sustainable energy access are addressed, including infrastructure gaps, access to industrial financing and regulatory streamlining.
Regional integration via the African Continental Free Trade Area (AfCTA) increases the stakes for industrial competitiveness. Access to a larger market makes specialisation more viable and allows Kenyan manufacturers to capture scale economies, which may not be possible in a fragmented or smaller environment.
Kenya’s diversified economy, combined with renewable energy should attract firms seeking stable production platforms with continental reach. Manufacturing driven by technology, innovation and infrastructure, requires both dependable energy and technical expertise. This integrated approach helps to ensure that value addition occurs efficiently while building inclusive technical capacity.
Kenya is addressing this in part through parallel investments in renewable infrastructure and Science, Technology, Engineering and Mathematics (STEM) education.
For instance, the KOICA-GIZ TVET Project, a joint initiative by Kenya’s Ministry of Education, the Korea International Corporation Agency, and GIZ to equip Kenyan youth with future-ready skills in, among other areas, manufacturing and renewable energy, is a notable step towards the development of an inclusive and sustainable future for Kenya.
As important, sustainable industrialisation must be firmly anchored on a predictable fiscal and regulatory environment which enables medium and long-term planning.
Illicit trade such as in the tobacco industry where illegal tax evaded cigarettes account for approximately 37 percent of the market, and counterfeits such as in the alcohol, cosmetics and electronics industries, is becoming a critical existential threat that needs urgent and decisive attention.
Irrefutably, addressing this critical issue will take a whole of society approach, to help ensure that legitimate industry and the livelihoods of Kenyan supply chains are protected.
At the same time, for industrialisation to be fully sustainable for Africa, it must be pegged on innovation.
Utilisation of science and modern technology in product design and innovation ensures that business solutions remain relevant and responsive to evolving needs and demands of consumers. It is also prudent that regulatory frameworks align themselves with the rapidly evolving marketplace, and even better, be a step ahead through proactive engagement with private sector.
If we are to realise Vision 2030, we must treat industrialisation as a national priority, anchored on renewable energy, skilled talent, and a whole-of-society commitment to safeguarding legitimate industry.
Services alone cannot generate growth at this magnitude while providing broad-based employment. Manufacturing creates formal jobs with competitive wages, develops technical capabilities that are transferable across industries and establishes production competencies that compound over time.
As Africa Industrialisation Day highlights sustainable industrialisation’s centrality to economic transformation, the synergies are apparent. It is time that we up the ante to help accelerate sustained and sustainable industrialisation and socio-economic development in our country, for the prosperity of all.