As part of a paradigm shift from an extractive economy towards a productive economy, Kenya pursued expansion and growth of local manufacturing strategy which has seen the introduction of diverse production initiatives and regimes.
One such initiative is the Buy Kenya Build Kenya.
As conceived from the outset, this initiative was to inject impetus into the manufacturing sector by increasing the purchase of locally produced goods and services by both the Public and Private sectors.
The Buy Kenya Build Kenya Strategy sought to inculcate in the mind of all Kenyan citizens, patriotism and preference for Kenyan goods and services as a means of supporting the domestic economy.
The strategy provides not only a road map but also a suitable framework to stimulate Kenya’s economy by strongly encouraging public and private sector expenditure that supports goods and services produced locally.
In this regard, it was thought that we will together foster the spirit of patriotism and pride in Kenyans consuming local products and services.
Now that the dust has finally settled on the ruckus over the China square, as a nation we can now objectively have a conversation on the Buy Kenya Build Kenya strategy.
Although the strategy seemed to have achieved positive results at inception, the lack of strong complementary efforts to mitigate against uncoordinated imports into the country has reversed the gains made.
Whereas the export driven focus has led to the increase of manufacturing capacity and contribution to GDP, local consumption has been suppressed due to limited initiatives geared towards the promotion of local consumption.
This has left the country exposed to the vagaries of uncoordinated import inflows to fill the created gap.
One such occurrence is the establishment of China Square, a supermarket priding itself on having almost everything under one roof.
From utensils, electronics, furniture to appliances, you can be guaranteed to find almost anything in there.
And Kenyans being Kenyans have flocked to the establishment since it opened its doors pronouncing doom for Nyamakima and Kamukunji traders due to the relatively fair prices and a wide range of variety.
Ironically, the traders demonstrated against the stiff competition fronted by China Square rather than push the government to prioritise Buy Kenya Build Kenya.
To them plausibly, Buy Kenya build Kenya means, buying Chinese low-quality products overpriced by local market cartels and shouldering the weight thereof in the guise of nationalism.
Capital can go anywhere. The government’s job is to attract it. As soon as we start implementing the laws haphazardly or to suit a certain narrative, we lose our competitive edge.
Buy Kenya Build Kenya is dependent on a lot of factors that drive value addition and competitiveness.
This includes energy costs, enabling tax regime, labour costs and much more.
Otherwise, this aspiration will also be affected by the trade bloc policies such as AfCFTA, EAC and COMESA common market agreements that allow affordable goods into Kenya.
In the last 10-15 years Kenya has lost many manufacturers to Uganda, Tanzania and Rwanda as we drop in most surveys on the ease of doing business yet we still remain oblivious of the impending collapse of the manufacturing sector.
Uganda has positioned itself as a manufacturing hub. Labour is cheap and housing is relatively affordable. Many Kenyan manufacturers in the Industrial area are setting up in Kampala.
On the flip side, we have struggled to move the contribution of manufacturing from the current 11 per cent to 15 per cent for the last 20 years in accordance with Vision 2030.
Going forward, there is need to adopt a balanced approach to economic liberalization with a view to supporting the production, purchase, supply, and consumption of locally produced goods and services that cannot be gainsaid.
Consequently, we flagrantly allowed agriculture, the backbone of our economy to face off against world competition on a leveled ground yet agriculture employs 40 per cent of our population, and 70 per cent of the rural folk.
Our problem is that at some point, a group of merchandisers controlled the state, they chose to kill manufacturing because imports guaranteed quick money without the hustle that is production. They controlled the sector and the rest is history.
Our today leaders seem to be blindly following the footsteps of their predecessors and that’s why they jealously guard and initiate demonstrations to protect the merchandising sector that is controlled by a few and conveniently lose focus on elephants, and agriculture.
And as we become a more open society, that business model is no longer sustainable especially if it depended on cronyism.
The rise in imports has resulted in a negative balance of payments over time and it's worse in such times when the shilling is on a free fall.
The Governments’ efforts towards creating an enabling business environment through business environment reforms have been acknowledged as an important pre-requisite for stimulating a public and private sector response that leads to economic growth, and ultimately employment and income generation.
However, the gap between theory and practice continues to widen with each passing day.
For instance, initially, 11 per cent of Nairobi was under industrial use, from Bunyala Road to GM and along Mombasa Road, the entire area was awash of manufacturers.
Today, only a paltry 3 per cent is left most of it go downing and warehousing either storing imported goods or fabricating completely knocked-down kits.
In this time and age when the world is a village, we have nowhere to run. It is either we adapt with the assistance, patronage, and or leverage on the incentives of the government, or our manufacturing regime will perish.
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