Kenya’s industrial growth slowed by weak infrastructure, skills gaps
NAIROBI, Kenya, May 7 - Kenya’s push to industrialise is being held back by weak infrastructure and skills gaps, a new continental report shows. The 2025 Kenya breaking news | Kenya news today |..
✨ Key Highlights
A new report by the Business Council for Africa reveals that Kenya's industrial growth is significantly hampered by inadequate infrastructure and a shortage of skilled labor. Despite strengths in digital finance, the nation lacks fundamental supports for manufacturing.
- Kenya's 2025 RED Index score highlights a poor performance in essential industrial drivers such as reliable power, transport, and science/technical education, meeting only one of seven key drivers: digital broadband.
- The Business Council for Africa, through its 2025 RED Index of Industrial Development in Africa, identified Kenya's industrial challenges.
- Kenya is classified among African economies as "vulnerable" or "stalled" in industrial development, with only Morocco, Egypt, South Africa, and Mauritius ranked as having strong industrial growth structures.
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Kenya's Industrial Growth Slowed by Weak Infrastructure, Skills Gaps - May 2026
A new report by the Business Council for Africa reveals that Kenya's industrial growth is significantly hampered by inadequate infrastructure and a shortage of skilled labor. Despite strengths in digital finance, the nation lacks fundamental supports for manufacturing. Meanwhile, contractors involved in Kenya's Affordable Housing Programme are projected to earn Sh86.5 billion in profits, a figure significantly higher than international standards for taxpayer-funded projects. Additionally, Kenya is experiencing a fuel crisis, with the Ministry of Energy and Petroleum attributing supply disruptions to technical and administrative issues while defending the decision to reintroduce higher-sulphur fuel.
