Chinese investment boosts Kenya's manufacturing competitiveness: expert

Chinese investments are boosting Kenya's manufacturing sector's competitiveness both regionally and globally, a Kenyan expert said on Friday.

Job Wanjohi, head of policy, research and advocacy, Kenya Association of Manufacturers (KAM), told a webinar that Chinese factories tend to have the latest technology that promotes water, energy and other production efficiencies.

"This has led to significant technology and knowledge transfer to the Kenyan manufacturing sector," Wanjohi said during the China-Kenya online investment and cooperation dialogue on healthcare and light manufacturing sectors.

Wanjohi said that Chinese firms typically provide onsite training to local employees and this technology eventually infuses into the local economy.

"In addition, sub-contracted firms also gain valuable technology from Chinese firms," he observed.

According to the manufacturers lobby, Chinese account for a small proportion of the overall manufacturing sector, with portfolios concentrated in the building material, paper and light industrial sectors.

"However, in the future, they are likely to emerge as the key driver of the sector given the global success of Chinese firms," he added.

"The coming into force of the Africa free trade area will also enhance Kenyan as a regional manufacturing hub," he added.

He urged the government to market Kenyan as an attractive investment destination to investors in the Asian nation as foreign investors have other competing priorities.