• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Corruption, payment delays stifle Kenyan manufacturers – survey – Citizentv.co.ke

Kenyan Business Feed by Kenyan Business Feed
Share on FacebookShare on Twitter

[ad_1]

Kenyan manufacturers are largely operating below capacity and say economic growth prospects are dim due to a cash crunch, drought and corruption, a survey by their umbrella association showed.

The survey, called the Manufacturing Barometer, was carried out by the Kenya Association of Manufacturers in the first quarter of this year.

It found that 47 percent of those surveyed operated at about half capacity, 33 percent operated at 75 percent of installed capacity and a fifth operated near full capacity.

President Uhuru Kenyatta said the sector was one of his top four priorities when he started his second term in 2017, due to its potential to create jobs.

But the government has struggled to boost the sector due to high electricity tariffs and illicit imports of goods such as sugar and cigarettes.

A Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) survey released on Monday showed activity in Kenya’s private sector contracted for the first time in 17 months in April, hurt by drought and strained cash flows.

The manufacturing sector grew by 4.2 percent in 2018, official data showed, and contributed 7.7 percent of the country’s annual economic output of about $80 billion (Ksh.8trillion), down from a share of 8 percent in the previous year.

The sector’s contribution to gross domestic product (GDP) has been falling gradually since 2014, when it stood at 10 percent.

Kenyatta’s government aims to raise the contribution of manufacturing to 15 percent of GDP by 2022.

The outlook for the sector this year could worsen due to persistent dry weather, the association said in the report.

“The agricultural sector slowed down on account of the delays in rains. This will have an effect on the industry,” it said. “Due to the current cash crunch and runaway corruption, the metrics are not looking promising.”

Private sector credit growth has slumped since the government capped commercial lending rates in September 2016 to lower the cost of credit.

Delays by the Kenya Revenue Authority in processing tax refunds were likely to hurt manufacturers’ cash flow, the report said.

Some survey respondents said delays in clearing cargoes at the Mombasa port were leading to lost sales and higher demurrage charges.

The survey also found 76 percent of respondents planned to freeze hiring of new full-time employees, or reduce their numbers.

The manufacturing sector covers a range of businesses, including food and beverage production, metal products fabrication, pharmaceuticals and cement production.




For Citizen TV updates
Join @citizentvke Telegram channel


Video Of The Day: This new man in Harambee Stars jersey Christopher Mbamba


[ad_2]

Source link


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

Kenya Re sets sights on expansion to Uganda

May 13, 2019

Messi scores twice as Champions Barcelona draw at Eibar

May 20, 2019

Subscribe.

Trending.

Tourism CS Rebecca Miano announces new measures at Maasai Mara, including ranger deployments, clearer signage, and public education following a viral tourist incident.

Government Tightens Maasai Mara Rules After Viral Tourist Clip

August 26, 2025
Safaricom launches B Live, a first of its kind service allowing customers to buy internet access by the hour, offering flexible one hour three hour and six hour bundles for students creators and professionals.

Safaricom Expands Digital Options with Innovative B Live Product That Adapts to Different Usage Habits

August 21, 2025

Co-op Bank Empowers Over 249,000 Kenyan MSMEs with Loans and Training

August 21, 2025
PLP and Safaricom Graduate 300 Youth in Push for Digital Talent Development Across Kenya

PLP and Safaricom Graduate 300 Youth to Boost Kenya’s Digital Talent Pipeline

June 23, 2025

Co-op Bank Branches in Nairobi and Their Contacts

March 3, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1804 shares
    Share 750 Tweet 439

Recent News

Tourism CS Rebecca Miano announces new measures at Maasai Mara, including ranger deployments, clearer signage, and public education following a viral tourist incident.

Government Tightens Maasai Mara Rules After Viral Tourist Clip

August 26, 2025

Co-op Bank Empowers Over 249,000 Kenyan MSMEs with Loans and Training

August 21, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF