President William Ruto said Kenya is in the final stages of creating an Industrialisation Fund that will lend to manufacturers at single-digit interest rates, and he also announced a Green Investment Fund targeting $200 million (KSh25.99 billion).
“We are in the final stages of creating an industrialisation fund. That will now lend money at single digits to enterprises that want to engage in manufacturing,” he said.
“We will start with KSh5 million, KSh10 million, KSh20 million, and gradually see how we can take it to KSh100 million and KSh200 million,” Ruto added.
The president did not disclose the fund’s initial capitalisation, sources of financing, implementation timetable or the eligibility criteria for borrowers.
Manufacturing’s contribution to gross domestic product slipped to 7.1 per cent in 2025 from 7.3 per cent in 2024, while the government aims to raise the share to 20 per cent by 2030.
Output in the sector grew two per cent to KSh3.8 trillion during the year, indicating modest expansion amid high operating costs and competition from imported goods.
The World Bank has identified limited access to capital, infrastructure gaps, unreliable and expensive electricity and regulatory challenges as major constraints on manufacturing competitiveness in Kenya.
