In a decisive move aimed at revitalizing and strategically bolstering its manufacturing sector, the Kenyan government has officially launched an extensive industrial mapping and geo-location exercise specifically targeting Nairobi County, the nation’s capital and a significant industrial hub. This ambitious initiative is designed to generate comprehensive and granular data on the county’s industrial landscape, which will serve as a robust foundation for evidence-based policy planning and targeted interventions aimed at fostering substantial growth and competitiveness within Kenya’s manufacturing sector.

This critical exercise is being spearheaded by the State Department for Industry, a key government body responsible for shaping and implementing industrial policy, in close collaboration with several strategic partners. These include the Kenya National Bureau of Statistics (KNBS), the primary source of official statistical data in Kenya, ensuring the accuracy and reliability of the collected information; the Kenya Industry and Entrepreneurship Project (KIEP), a World Bank-funded initiative focused on enhancing the competitiveness and growth of Kenyan SMEs; and Kenya Industrial Estates (KIE), a state corporation mandated to promote the development of micro, small, and medium enterprises (MSMEs) through the provision of industrial infrastructure and support services. This multi-agency collaboration underscores the government’s commitment to a holistic and data-driven approach to industrial development.

Speaking at the launch event, Principal Secretary (PS) of the State Department for Industry, Dr. Juma Mukhwana, emphasized the collaborative nature and strategic importance of this initiative. In a speech delivered on his behalf by Karanja Yora, the Secretary Administration from the State Department for Industry, Dr. Mukhwana lauded the commencement of the “Mapping and Geo-location of Industries and Development of Industrial Database and Directory for Kenya” project.

Dr. Mukhwana stated, “This project represents a significant step toward mapping the industrial landscape of Nairobi and addressing the sector’s unique challenges through accurate, location-based data.” He highlighted the critical need for a comprehensive understanding of the existing industrial ecosystem within Nairobi County as a prerequisite for formulating effective policies and implementing targeted programs that can truly address the specific needs and challenges faced by manufacturers operating in the region.

The industrial mapping exercise will involve a systematic and thorough collection of data from a wide spectrum of industries operating across the diverse sub-counties of Nairobi. The primary objective is to create a detailed and up-to-date database that meticulously captures crucial information about each industrial establishment. This data will include the size of the operation, its precise geographical location, the specific operational activities undertaken, the production capacity, the levels of employment, and, importantly, the key challenges and constraints faced by these manufacturers in their day-to-day operations and long-term growth prospects.

Dr. Mukhwana underscored the strategic imperative of this data collection effort in the context of Kenya’s broader industrialization goals, particularly within the framework of the Bottom-up Transformation Agenda (BETA), a key economic development strategy of the current administration focused on empowering grassroots businesses and communities. “In order to realize our industrialization aspirations especially within the framework of the Bottom-up Transformation Agenda (BETA), we must develop a comprehensive industrial database and directory,” the PS noted.

He further elaborated on the anticipated benefits of this mapping exercise, stating, “Mapping and documenting the state of manufacturing will strategically position the sector for growth and competitiveness.” By providing a clear and accurate picture of the current industrial landscape, the government will be better equipped to identify key growth areas, understand existing capabilities, and pinpoint specific bottlenecks that need to be addressed through targeted policy interventions and support programs.

The methodology employed in this exercise will integrate sophisticated geospatial technologies to create both a physical and a digital directory of industries. This will involve accurately geo-coding the locations of industrial establishments, allowing for spatial analysis of industrial clusters and concentrations. Furthermore, the exercise will culminate in the generation of a detailed assessment report that identifies specific opportunities for industrial expansion, diversification, and overall development within Nairobi County. This report will serve as a crucial tool for policymakers and investors alike.

Dr. Mukhwana reiterated the fundamental role of industrialization in Kenya’s overall economic development, emphasizing its direct contributions to job creation, value addition to raw materials, and the strengthening of the country’s economic base. He also highlighted the strategic importance of a robust manufacturing sector as Kenya seeks to enhance its position within the East African region and leverage the opportunities presented by the African Continental Free Trade Area (AfCFTA). A well-mapped and understood industrial sector is essential for Kenya to effectively compete and collaborate within these broader economic frameworks.

“Our ability to design targeted interventions has long been hampered by fragmented or outdated data,” Dr. Mukhwana acknowledged, emphasizing the critical need for this comprehensive data collection exercise. “This exercise will help close that gap and ensure government support is aligned with the real needs of our manufacturers from micro to large-scale industries,” he affirmed, highlighting the commitment to providing tailored support based on accurate and current information.

The PS further emphasized the alignment of this initiative with Kenya’s long-term development blueprint, Vision 2030, the current Bottom-up Economic Transformation Agenda (BETA), and the implementation frameworks for the AfCFTA. He pointed out that the data generated will be instrumental in enhancing cluster development, optimizing infrastructure planning to support industrial growth, facilitating industrial upgrading through technology adoption and skills development, and improving market access for Kenyan manufactured goods both domestically and internationally.

Dr. Mukhwana concluded his remarks by making a strong call to all industry players operating within Nairobi County to fully support the data collection exercise. He emphasized the long-term significance of their participation, stating, “The data collected today will influence the decisions we make tomorrow that directly affect the business environment, access to finance, skills development and industrial growth.” This highlights the crucial role of collaboration and accurate information sharing in ensuring the success and impact of this important national initiative.

In his own address, the Secretary Administration from the State Department for Industry, Karanja Yora, underscored the urgency of undertaking this industrial mapping exercise, noting that it has been a considerable period since a similar comprehensive data collection effort was conducted within the country’s industrial sector. He emphasized the need for current and accurate data to inform effective policy decisions.

“We want to capture all the industries located in Kenya, within our boundaries, with an aim to include all sectors, ranging from small enterprises to large corporations, ensuring a holistic understanding of the industrial ecosystem in the region,” Yora stated, highlighting the inclusive scope of the exercise, which aims to provide a complete picture of Nairobi’s diverse industrial landscape, from burgeoning startups to well-established multinational corporations.

Yora also addressed the potential financial implications of the survey, noting that the total cost remains somewhat uncertain at this early stage. He explained that data collection is inherently a dynamic process and may encounter unforeseen challenges or require adjustments that could potentially alter the initial cost estimates. This pragmatic approach acknowledges the complexities involved in such a large-scale data gathering undertaking.

Meanwhile, Isaac Ndegwa, a Senior Manager at the Kenya National Bureau of Statistics (KNBS), provided insights into the geographical distribution of industrial establishments across Nairobi’s 17 sub-counties. He highlighted the significant variability in industrial concentration, stating, “Different sub-counties have different rates of establishment, creating diverse industrial concentrations.” He specifically pointed out that certain areas within Nairobi, such as Baba Dogo, may exhibit a higher density of industrial activity compared to other sub-counties. This geographical insight underscores the importance of the geo-location aspect of the exercise in understanding the spatial dynamics of Nairobi’s industrial sector.

Ndegwa further explained the planned workflow for the data processing and analysis. He indicated that as data is actively gathered from industrial establishments across Nairobi County, it will be processed concurrently with the report writing phase. This efficient workflow will be facilitated by close collaboration with the Kenya Institute of Statistics, a leading institution in statistical training and research. This parallel processing approach aims to expedite the analysis of the collected data and ensure a swift turnaround in generating the comprehensive assessment report that will inform future policy decisions and industrial development strategies. The insights gained from this mapping exercise are expected to be invaluable in shaping a more competitive and prosperous industrial sector in Nairobi and, by extension, the entire nation of Kenya.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

13th May, 2025