Policy Brief No. 20 of 2022/2023 on Revitalizing the Leather Industry to Foster Economic Transformation

Abstract

The Kenya Vision 2030 economic pillar underscores the importance of creating a robust, diversified and competitive manufacturing sector. The economic blueprint aims to achieve the goal by revamping local production and expanding participation in regional markets. The African Continental Free Trade Area (AfCFTA), for instance, provides a competitive trading environment and market to foster economic transformation. Despite the opportunity that AfCFTA presents, Kenya’s prospects in manufacturing declined in the past decade. As an example, Kenya’s manufacturing as a share of GDP declined from 13 per cent in 2013 to 7 per cent of GDP in 2021 . Expansion of manufacturing sector is critical for job creation and economic growth. In addition, manufacturing attracts foreign investment; manufactured goods offer opportunities for increased value addition and call for robust trade logistics. The trade logistics can be achieved through understanding the factors curtailing Kenya’s potential and how the country can alleviate the situation and exploit the AfCFTA potential.