Government to double export, industrial parks by 2027- Ministry

Business
By Okumu Modachi | Jan 20, 2024

Infinity Industrial Park warehouses. [Wilberforce Okwiri, Standard]

The government has announced plans to double the contribution of exports to the country's Gross Domestic Product (GDP) in the next three years.

In a draft plan seen by The Standard, the Ministry of Investments, Trade, and Industry (MITI) seeks to increase the contribution of exports to GDP from the current 10 per cent to five per cent by 2027.

This, the government said will be realised through construction of more county industrial parks, Economic Processing Zones (EPZ) as well as enhancing foreign direct investments.

According to MITI, the government has committed to establishing 30 additional county aggregation and industrial parks to activate priority value chains and operationalise EPZs in Busia, Kirinyaga, Uasin Gishu, and Murang'a counties.

Special Economic Zones in Dongo Kundu, Naivasha, and Isiolo are also expected to be commissioned to boost export produce in the country.

These efforts, the government projects will generate an additional Sh64 billion to Sh128 billion, which export products currently contribute to the country's GDP annually.

The MITI has highlighted several projects, they say, have been completed since President William Ruto assumed office.

It indicates that the value of exports increased by 19.6 per cent during the last quarter of 2023 in comparison to the previous year's last quarter.

At the same time, the Ministry says that 17 county industrial parks were established, about Sh115 billion worth of investments facilitated and cotton production stepped up to 40,000 acres in 2024 from 5000 in 2022.

During the launch of a roadshow on Monday to take stock of its achievements since Kenya Kwanza administration took over, Performance and Delivery Cabinet Secretary Moses Kuria said the efforts align with the government's vision to turn around the economy.

Kuria termed milestones as tremendous achievements by President William Ruto's administration.

"Key among these achievements include an increase in NSSF membership from 1.2 million to 2.9 million members signifying a 66 per cent growth in one year, an increase in NSSF savings from Ksh1.4B to Ksh5.6 billion signifying a 600 per cent growth and an increase in job placement locally and abroad from 2.9 million to 3.1 million signifying a 3.8 per cent growth," Kuria said.

The event, which enters its climax on Saturday, brought on board 22 government ministries.

The ministries' officials are expected to generate a report that will be tabled during the next cabinet retreat for deliberations.

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