Industry-led growth strategies require State backing to succeed

Opinion Editorial

By Rajul Malde is Commercial Director, Pwani Oil Products Limited.



The manufacturing sector’s contribution to Kenya’s GDP tumbled from 9.3 per cent to 7.2 per cent in the five-year period between 2016-2021, according to the Kenya National Bureau of Statistics. This is way below the 20 per cent target the sector is aiming to achieve by 2030. We therefore urgently need to re-think our industrial model and adopt strategies that will make the sector the engine of the country’s transformation into a middle income economy.

To make Kenya a serious industrial hub requires strategic thinking. Even as we push the government to address concerns raised by manufacturers, notably, reduced cost of power, tax incentives for investment, and a predictable regulatory environment, we must quickly explore ways of enhancing Kenya’s industrial output and efficiency.

Fortunately, a lot is happening globally and I have in mind three mega-trends that are changing the world of industrial operations, and which if applied locally, would significantly increase manufacturing share of GDP but also help the sector recover into a trajectory of sustainable growth.

The first is optimization of industrial processes using innovative technologies like Artificial Intelligence to create ‘intelligent factories’ of the future. Here, we are talking of not just automation of industries but also the use of innovative technologies like data analytics to achieve higher levels of throughput and yield while reducing costs. Companies in other countries are experimenting with AI to improve product quality through automated inspection processes and mitigate supply chain disruptions by programming machines to ‘learn’ advanced production planning and scheduling techniques.

As a sector, we cannot escape the disruptive impact of technology. Question is, how do we harness innovative tools like AI to stimulate manufacturing growth and productivity? Where does the government come in to support such industry-led initiatives? Investing in new advanced technology is, of course, not cheap but developing nations like Kenya that harbor industrial dreams must be willing to make the technological leap of faith.

A key reason why the so-called Asian Tigers – Hong Kong, Singapore, Korea and Taiwan – were able to develop into industrial giants was because of their willingness to embrace advanced technologies despite being relatively poor economies at the time they made this important decision. We must start integrating Industry 4.0 digital transformation into local manufacturing operations to achieve new levels of efficiencies to counter the high cost of production.

The second mega-trend is re-skilling and upskilling the local industrial workforce with new technical and knowledge capabilities for the fast-changing global industrial workplace. To work with new technology, workers need digital among other skills as a basic labor parameter. We also need to invest heavily in Science, Technology, Engineering and Mathematics (STEM) in our schools and in addition, equip our learners with ‘soft skills’ like emotional intelligence, critical thinking, communication, creative thinking and leadership, that prepare them for a competitive industrial environment. Industry can partner with universities and technical training institutions (TVETs) to nurture innovative workers for the new Industrial Age.

The third mega-trend is building a sustainable manufacturing value chain that is capable of withstanding short and long-term shocks. The aftershocks of the global pandemic and the war in Ukraine have forced manufacturers to focus more on strengthening supply chain resilience. Hence the need for the local industry to plan better for unpredictable events including climate-change related disruptions as a short and long-term growth strategy. Use of predictive tools such as AI should be an integral part of this re-alignment process.

Also, manufacturers are under pressure to meet higher consumer demands and deliver products at a price that meets their expectations. This means going beyond just producing quality products to focusing more on how such products add value to the customer’s aspirations and daily life experiences. Investing in ecologically-friendly production processes not only minimizes negative impacts on the Planet but also makes products more attractive to the growing population of environmentally-conscious consumers. This is one way of producing goods that are more competitive for both the local and global markets.

However, for the above industry-driven strategies to succeed and achieve the 20 per cent manufacturing share of GDP within seven years, the government must create the right environment. It is simply not possible to realize enhanced industrial productivity and growth without State support. The Asian Tigers are the industrial giants they are today because their governments deliberately supported industrial innovation via “true industrial policies” backed by heavy investment in infrastructure and education.

In short, achieving double-digit growth and performance in the manufacturing sector requires government and industry to come together and pursue a common objective.

KBL Invests Ksh97 million in a Nationwide Initiative To Reward Consumers and Drive Sustainability Agenda

Senator beer brand has introduced ‘Jipe Form na Senator Ushinde’
Senator Consumers to win over Ksh 97 million in prizes in cash, shopping and home makeovers.
The national consumer campaign seeks to uplift the lives of loyal Senator customers and drives KBL’s sustainability agenda.

Nairobi, Kenya, April 26, 2023: Kenya Breweries Limited (KBL), through its low-end flagship beer brand, Senator Keg, has today announced a nationwide consumer campaign dubbed Jipe Form na Senator Ushinde that aims to reward its consumers as well as drive its sustainability agenda.



The Kshs 97 million campaign, dubbed, Jipe Form Na Senator Ushinde, seeks to enrich the lives of Senator consumers and communities, nationwide.



The three-month-long campaign, worth Kshs 97 million, will see five (5) grand lucky winners win Ksh2 million each, with each winner receiving Ksh1 million to invest in their personal growth and another Ksh1 million to be donated to a community of their choice.

Additionally,20 consumers will receive monthly home makeovers monthly, 12,000 winners will receive weekly shopping vouchers, and a whopping 1,980,000 winners will receive daily Cash and airtime vouchers. These rewards underscore the Senator’s commitment to the welfare of its customers.

While announcing the initiative, KBL Managing Director Mark Ocitti said that the company has invested over Kshs 200 million in the initiative, demonstrating its steadfast commitment to promoting social sustainability and economic empowerment in Kenya. He stated that as a sustainable business, KBL will continue to make deliberate and aggressive efforts to empower Kenyans to make informed decisions that will positively impact their social and economic well-being.

“Over the years, KBL has been intentional in contributing significantly to the development and prosperity of the Kenyan economy. Catalysing the creation of thriving communities is embedded in our vision and sustainability agenda. Now more than ever, we understand that our business must be a force for good. Through initiatives such as these, we are scaling up our commitment to promoting social sustainability and economic empowerment of our communities,” said Ocitti.

Mr Ocitti added that this is the third edition of the campaign, which has been hugely successful in the past. He disclosed that KBL aims to continue transforming illicit beer market zones into commercial markets while creating wealth for communities in the process. The campaign also seeks to educate consumers on the effects of illicit beers on social, economic, and health progression. Mr Ocitti underpinned that KBL will continue to collaborate with various business partners and key stakeholders to achieve its strategic intent.

“We are proud of the impact that our previous campaigns have had on communities, and we are committed to making a positive difference in people’s lives through this campaign and future ones,” concluded Mr Ocitti.

To participate in the campaign, customers need to purchase two 500ml mugs of either Senator Lager or Dark Extra and receive a scratch card. They can then SMS a unique valid code found under the scratch panel to 22110 to enter the competition. Each valid code gives one entry.

Also commenting on the campaign, Senior Brand Manager of Beer Abel Ratemo, said, “Senator KEG is a brand by the people, for the people, and what better way than to reward customers with incredible prizes while empowering them to give back to the community through community development projects.”

The Jipe Form Na Senator Ushinde campaign builds on Senator Keg’s previous successful National Consumer Promotions, which have had a positive impact on communities. Last year’s grand prize winners received Kshs 1 million to partner with community-based organizations and EABL to upgrade lives.

Last year’s 5 grand draw winners picked community development projects worth Kshs 1 million each. They partnered with Community-Based Organizations (CBOs) alongside EABL to upgrade lives within communities. The projects undertaken by the winners were as follows:

Furaha Community Organization in Nairobi – Water, Health, and Sanitation
Kambu Water and Sanitation Self Help Group Kibwezi – setting up of solar-powered water station
Bungasi CBO in Mumias West – Setting up three water kiosks
She Is More CBO in Kilifi – Setting up a chicken-rearing business
Green Community Self-Help Group in Njoro – Setting up organic fertilizer processing areas, greenhouse, decomposing shed and mechanizing the whole operation.

KBL remains committed to building lasting relationships with consumers and appreciates their support of the brand. Senator Keg continues to be the undisputed market leader in the beer segment, with a 34% value share in sales and volumes. Presently, Senator’s distribution and the retail network has witnessed growth that directly supports over 47,000 farmers, country-wide.

KENYA POLICE CROWNED OVERALL WINNERS OF PRESIDENTS CUP

Clive Ayuko

Nairobi, Kenya 25th April 2023

The Kenya Police Taekwondo Team have been crowned the overall winners of the Kenya Taekwondo President’s Cup.

This was made known early today morning at Kenya Police Headquarters at Vigilance House Nairobi. Speaking during the announcement the tournaments President Mr Jared Ojuok HSC Said; “The annual tournament held every easter attracted the participation of 21 teams to include: The Kenya Police, The Kenya Defence Forces, the National Youth Service NYS, the General Service Unit GSU, and Civilian teams to include ICY, Diani Tigers, Chalbi, Mombasa Cement, Cobras and Holy Fitness Club saw the men in Blue Scoop 10 gold medals with Faith Odhiambo, Edna Sichangi, Everlyne Atieno, and Faith Ogallo winning in the Fin Weight, Fly Weight, Bantam Weight and Heavy Weight Categories respectively.

The men’s team scooped 5 Golds medals with Francis Ngugi winning in Flyweight, Collins Munene Scooping Bantam Weight, Wizek Opiyo taking the feather weight title, Sheikh Balala winning the lightweight and Vincent Dock winning the Welter weight Category.

The Team will be representing Kenya in the upcoming Africa Police Taekwondo Confederation championships scheduled for 24th to 30th June 2023.

PACJA AND KENYA YOUNG PARLIAMENTARIAN ASSOCIATION ESTABLISH AN MOU

Nairobi, Kenya, April 20, 2023:

Pan African Climate Justice Alliance (PACJA) and Kenya Young Parliamentarians Association (KYPA) signed a Memorandum of Understandings that aims to strengthen partnership in area of Climate Change in Kenya.
The signed MoU drives its mandate from the common values and principles of the two organizations’ vision and mission, mandates and focus on the common actions for the common good in the continent and bound by the limitations.
The signed MoU outlines the identified themes and the specific actions and the roles and responsibilities; limitations of collaboration; and the operational system for implementing the MoU have been clearly stated. For realizing common agenda, the implementation of this MoU shall be based on, among others, the following values including, collegiality, equality, transparency, result oriented Approach, responsibility and complementarity.
Speaking after the signing of Memorandum of understanding, Dr. Mithika Mwenda commended the role of young legislatures are playing in owning issues of Climate Change and linked impacts to the community. He mentioned that PACJA has been working with the Parliament in Kenya in addressing environment and climate change and mentioned the invaluable role the Kenya Parliament played in hosting the last two Pan African Parliamentarian Sessions.
“We appreciate people who are proactive as change will not come from other quarters but from young transformative leadership. Everything is about the future. For the interest of current and future generation we need to involve everybody hence this is a major milestone for us”. Let’s this MoU be an implementation one” said Mithika Mwenda.
Hon. Eric Mwangi the chairperson of Kenya Young Parliamentarians Association stressed on the role of young generation in taking a step forward to protect environment and assured the role of young parliamentarians in leading the implementation of the aspirations of this MOU.
He said that their association in the parliament will carry out sensitization in order to pull together other organized groups to work together in the fight against climate change impacts in Kenya and beyond.
“As young members of the parliament, through this MoU we have committed to be advocates of Climate Change in the National Assembly where there is a need of allocation of resources in various sectors such as agriculture, water and other sectors that that are the center of conserving our ecosystems”, assured Hon. Eric Mwangi.
Currently, the Kenya Young Parliamentarians Association has 93 members all below 40 years old. They envision to be an association of informed and empowered legislators effectively engaging with parliament, government and other stakeholders working to empower the youth of Kenya.
Being mindful of the impact of climate change to people, PACJA envisions a global environment free from the threat of climate change with sustainable development, equity and justice for all.
PACJA is an alliance of over 1000 CSOs spread across 51 countries in Africa and advancing African position in climate discourse.

RHYTHM AND BLUES GROUP BOYS TO MEN COMING TO KENYA

By Clive Ayuko

Nairobi, Kenya 20th 2023

Acclaimed Rhythm and Blues Group Boyz to Men will be performing as the headline act in the second edition of Stanbic Yetu Festival to be held in June 10th 2023.

The Four time Grammy Award Winners will be will be performing in Kenya in the first leg of their first ever Africa tour before heading to Uganda and South Africa. This announcement was made today afternoon by organizers of the Stanbic Yetu Festival at Sankara Hotel Westlands Nairobi.

BAR HOTELS AND LIQUOR SELLERS LOBBY RESPONDS TO GOVERNMENT CALL ON ENDING ILLICIT CONSUMPTION IN CENTRAL REGION

By Clive Ayuko

Nairobi, Kenya 20th April 2023

The National Bar Hotels and Liquor Traders Association, the lobby group representing the interests of 54,000 bar owners, Alcohol and Liquor Traders in Kenya has come out to support the government initiative to end consumption illicit alcohol in the Central region.

This follows recent comments by Deputy President Rigathi Gachagua who speaking at meeting for elected leaders and administrators for the Central region in Nyeri county declared war on illicit alcohol sold in the region saying the situations has made the youth unproductive. A recent report by National Campaign on Alcohol and Drug Abuse listed central Province as the most affected with abuse of alcohol.

Speaking at a Nairobi Hotel early today afternoon Secretary General of the Outfit Mr Bonface Gachoka lauded the government move spearheaded by the Deputy President Rigathi Gachagua calls to have a consultative process of ending the menace as indeed commendable.

Mr Gachoka however cautioned against the harassment of Bar and Liquor Traders in Kiambu, Murang’a, Kirinyaga, Embu and Laikipia through arbitrary arrests as unfair urging security agencies to enforce measures in accordance with the laws of the land.

The Association took side with some of the proposals presented in ending the scourge in the Central region to include; amendments of county specific bills to align with the Alcohol control Act 2010, the need to conduct a census covering distributers of alcoholic drinks in the County and the establishment of Inter- Governmental Committee on Alcohol and Drug Abuse. For amendments to existing laws and regulatory framework the Association argued that a comprehensive stakeholder engagement to iron out any thorny areas of concern.

Kenya Association of Manufacturers and Council of Governors host forum on fostering economic Development

Wednesday, 19th April 2023, Nairobi: Kenya Association of Manufacturers has called on county governments to position the counties as ideal investment destinations.



This was during a forum hosted by Kenya Association of Manufacturers (KAM) and Council of Governors (COG), themed ‘Strategically positioning counties as investment and manufacturing destinations and fostering cooperative development to spur economic growth.’



Speaking during the forum, Machakos County Executive Committee Member (CECM) for Trade, Industrialization and Innovation, Honourable Sharon Mutua appreciated the business community’s role in driving socio-economic roles in the devolved system of Government.



“County governments acknowledge the role of the private sector in creating a sustainable economy. Our goal is to create a favourable business environment that will foster growth and investments. We have mapped out investment opportunities in various counties, as we look to drive county-based industrialization.”



KAM CEO, Anthony Mwangi noted that stability and predictability earns investors’ trust.



“Policy instability and unpredictability is one of our biggest challenges as the manufacturing sector. When operating and trading in the counties, industries have to adhere to numerous county fees, levies and charges, as well as licenses. KAM is working to collaborate with the Council of Governors to launch County Industrial Competitive Index (CICI) to track industrial development in counties.”



He called for the need to synergize efforts both at the national and county levels of government, saying, “We ought to have collaborative, progressive, and developmental relations between all the actors as a means of raising standards and productivity at the same time for the benefit of the entire economy.”

EABC URGES EAC PARTNER STATES TO REDUCE COSTS OF DIGITAL TAX STAMPS TO MANUFACTURERS

Thursday 19th April 2023, Arusha, Tanzania:

The East African Business Council (EABC) has called for a review and reduction in the cost of the Digital Tax Stamp (DTS) system, which has been implemented in the region to improve revenue collection on excisable goods.

The main challenges faced by manufacturers in the implementation of DTS are the cost of stamps, equipment installation, and operation of the system.

The EABC urges the governments of East African Community (EAC) Partner States, through the revenue authorities, to take quick action to reduce Digital Tax Stamp (DTS) costs by reviewing existing DTS contracts with a view to reducing the high excise stamp fees imposed on manufacturers.

EABC recent analysis shows: Despite the solution provider of DTS being the same across the region, the cost of the stamp differs significantly in each country. The stamp fee is additional to the excise duty tax payable under the country’s respective Excise Act – this is double taxation for manufacturers.

The also analysis reveals: the cost of excise stamps is disproportionately apportioned to different products with no justification. The cost of the stamps paid by the manufacturers goes to the ‘foreign’ DTS provider/supplier and not to the government’s revenue authority.

The reduction in costs would enhance compliance of small-scale manufacturers with DTS regulations, improve sustainability, and further boost revenue collection. A relatively lower and uniform price for DTS would make it easier for firms to adopt the new technology. A recent study commissioned by the Confederation of Tanzania Industries (CTI) shows the average acquisition cost for the digital print system was approximately USD 634,000 for beer and USD 21,567 for soft drinks.

The EABC urges revenue authorities to explore ownership of the digital tax stamp system through Build, Operate and Transfer (BOT) model to limit capital flight. In the long run, the DTS system should not impose any financial burden on manufacturers.

“Wider public stakeholders’ engagement and inclusion of manufacturers’ input in the re-negotiation process of a better digital tax stamp system is important,” said Mr. Kalisa, EABC CEO. This would ease the development and rollout of alternative DTS solutions that are more acceptable to all stakeholders, including SMEs, he explained.

The revenue authorities should also sensitize the public on the validation of tax stamps to improve compliance and discourage counterfeiting in the region. In principle, consumers of excisable goods should be able to verify the authenticity of the stamps through the applications provided by the revenue authorities.

LG Electronics Takes Home 23 Awards at the iF Design Awards 2023

· LG Wins Total of 23 Accolades, Including One iF Gold Award, For Outstanding Product Design and User Experience Innovations

· LG commits to offer differentiated designs that provide first, unique and new customer experiences, enhanced convenience as well as an emotional element that can bring smiles to our customers and across the industry

Nairobi, April 17, 2023 — LG Electronics has received 23 honors at this year’s edition of the iF Design Award, spotlighting the company’s steadfast commitment to exceptional product design and user experience.



Held annually in Germany, the iF Design Award is widely viewed as one of the world’s top three industrial design awards along with the Red Dot Award and the International Design Excellence Award (IDEA). This year, a total of 11,000 products were submitted from around the globe, competing for recognition in nine different award categories.



Commenting on the recognition, LGs head of Corporate Design Center Hwang Sung-gul said, “The success we’ve enjoyed at this year’s iF Design Award is a result of our commitment to developing innovative lifestyle solutions based on extensive customer experience data. Moving forward we will continue to offer differentiated designs that provide first, unique and new customer experiences, enhanced convenience as well as an emotional element that can bring smiles to our customers and across the industry.”



Of the 23 accolades won by LG Electronics, the unique LG PuriCare AeroFurniture received an iF Gold Award for Product Design.



The purifier doubles as a side table and mood lamp featuring a compact design. It is ideal for use in various spaces, such as a bedroom or living room, and delivers personalized performance and design options. With different color combinations possible, and two types of table-top to choose from, the new AeroFurniture can be tailored to match any taste or home interior.



Other LG innovations recognized for their outstanding product design at the iF Design Award 2023 include the LG OLED Flex, a groundbreaking TV featuring the world’s first bendable 42-inch OLED screen, and the LG refrigerator with MoodUP™ technology, a next-generation home appliance with color-changing door panels that can be controlled via the LG ThinQ app. LG gram Style, a powerful laptop with a sleek, elegant design that appears to change color depending on lighting and viewing angle, was also acknowledged by the Award’s judges.



Honored in the Product Concept category, LG OMNIPOD presents new mobility experiences, boasting a vehicle cabin that can serve as an extension of one’s home. Meanwhile, LG ThinQ, the company’s smart home platform, was recognized in the Communication category for enhancing convenience by offering intuitive functions.

HIGH COURT TEMPORARILY HALTS ASSUMPTION TO OFFICE RUTO APPOINTEES TO CLIMATE CHANGE COUNCIL

By Clive Ayuko

Nairobi, Kenya 17th April 2023

The High Court of Kenya through Justice Mugure Thande has temporarily halted the Assumption into office of Climate Change Council members following their nomination and subsequent appointment by President Dr. William Ruto.

This follows a petition filed by over 100 community based organizations led by Mt. Kenya Network Forum and Indigenous People National Steering Committee on Climate Change IPNSCCC who contend that the nominations and subsequent appointments were irregular and thereby illegal.

The High Court issued interim orders stopping the assumption to office of Ms. Oumar Omar, Ms. Emily Mwende Waita, Dr. George Odera Outa and Mr. John Kioli to the Climate Change Council pending hearing and determination of the case. The hearing of the case has been set for 12th June 2023.