MALDE UNVEILS BOLD MANUFACTURING REVIVAL PLAN, IN LINE WITH WITH UDA’S SEZ-DRIVEN APPROACH

Nairobi, Kenya — Industrial policy debates intensified weeks ago after a businessman, Mr. Savan Malde unveiled a three-pronged proposal aimed at revitalizing Kenya’s struggling manufacturing sector, positioning it as a major engine for job creation and economic transformation.

His proposals come at a time when Kenya’s manufacturing sector has stagnated at roughly 7–8% of GDP, far below policy targets, with analysts citing high costs, policy inconsistencies, and limited financing as key constraints. 

Subsidies to Lower Cost of Production: At the heart of Malde’s plan is a call for targeted subsidies to manufacturers, particularly in energy, raw materials, and taxation.

According to the proposal, subsidies would: Lower the cost of electricity, a major burden on manufacturers, provide tax rebates or credits for locally produced goods and support local sourcing of inputs through government-backed incentives

Industry stakeholders have long pointed to high production costs — especially energy and taxation — as key barriers to competitiveness. 

Malde argues that structured subsidies, similar to those used in emerging Asian economies, could help Kenyan firms compete with cheaper imports while expanding local production capacity.

Doubling Budget Allocation to Spur Jobs: Malde further proposes doubling the national manufacturing budget from the current estimated KSh 23 billion (about 0.6% of the national budget) to accelerate industrial growth.

The proposal projects: Creation of at least 100,000 new jobs, Increased industrial output and exports,  and Stronger support for SMEs and industrial parks.

Experts have consistently highlighted public finance shortfalls as a major limitation in scaling manufacturing investments. 

“Without significant capital injection, manufacturing will remain underperforming,” Malde noted, echoing concerns that the sector has lacked sufficient prioritization despite its central role in economic growth.

Diplomatic Support for Machinery Sourcing: In a novel policy shift, Malde is also proposing that Kenyan missions abroad be actively used to support manufacturers.

Under the plan, embassies would: Identify affordable machinery suppliers, Negotiate bulk procurement deals and Facilitate technology transfer partnerships.

Analysts say this could help address Kenya’s heavy reliance on imported industrial equipment, which has slowed technological upgrading in the sector.