Nairobi gubernatorial candidate Irungu Nyakera has drawn attention to the sharp decline in Kenya’s manufacturing sector, linking it to rising operational costs, burdensome loans, and unpredictable taxation.
Speaking on X on Tuesday, Nyakera warned that without decisive government intervention, more companies could close, further weakening the economy.
According to Nyakera, manufacturing’s share of the country’s GDP has dropped to 7% from 12% a decade ago, reflecting a broader trend of shrinking industrial activity.
He noted that electricity expenses and limited government support have compounded these challenges, leaving many local enterprises struggling to stay afloat.
Nyakera emphasized the importance of industrial development for Kenya’s economic future, highlighting the role of manufacturing in generating employment, boosting exports, and reducing dependence on imported goods.
“Maximizing local raw materials not only strengthens industries but also supports farmers and small enterprises,” he added.
The aspirant drew comparisons with Singapore, arguing that Kenya’s potential for industrial growth remains largely untapped.
He urged policymakers to place manufacturing at the center of national economic planning, advocating for reforms that would revitalize the sector ahead of the 2027 general elections.
The Kenya National Bureau of Statistics has documented a steady decline in manufacturing’s contribution to GDP, mirroring concerns raised by Nyakera.
Nyakera’s statement reflects growing public debate over how the government can foster a business-friendly environment, with industrial policy, energy pricing, and taxation cited as critical areas for reform.
His call comes amid broader discussions on job creation and economic recovery, which are expected to dominate political campaigns over the next two years.