Inside Kenya’s Manufacturing Squeeze as Production Costs and Imports Rise

NAIROBI, Kenya, May 31 – Kenya’s manufacturing sector is grappling with rising production costs, growing import competition and weakening demand, raising Kenya breaking news | Kenya news today |..

✨ Key Highlights

Kenya's manufacturing sector faces significant challenges due to a confluence of rising production costs, intensified import competition, and weakening consumer demand, impacting industrialization goals.

The sector's contribution to GDP declined to 7.1% in 2025 from 7.3% in 2024.
Key organizations involved include the Kenya Association of Manufacturers (KAM) and Stanbic Bank Kenya.
Manufacturers highlight high electricity tariffs, transport costs, taxation, and reliance on imported raw materials as major hindrances, while economists suggest improving domestic production competitiveness.