KAM,EPZ explores Collaborations aimed at driving Industrialization

Kenya Association of Manufacturers (KAM) held a meeting with a team from Export Processing Zones Authority (EPZA), led by the CEO Richard Omelu, to explore potential collaborations aimed at driving Kenya’s industrialization and export growth.

The KAM delegation was led by Chief Executive Tobias Alando, MML, Bsc. and Ms. Miriam Chepchumba Bomett, Head of Policy, Regulatory, and Advocacy.

Key discussions centered around market access for Export Processing Zone (EPZ) companies, with a particular focus on the extension of the African Growth and Opportunity Act (AGOA), which is crucial for sectors like apparel. Both parties agreed on the need to secure access to regional markets, including the Tripartite Free Trade Area (TFTA) and the African Continental Free Trade Area (AfCFTA).

The meeting also addressed various policy challenges, such as new levies and regulations, including the Exports and Investments Promotion Levy, which were seen as additional burdens on EPZ businesses.

There was a shared recognition of the need to resolve these issues to improve the business environment for EPZ companies. Infrastructure challenges, such as water, roads, and electricity, were also discussed as critical areas for improvement. Both KAM and EPZA acknowledged the urgency of addressing these infrastructure gaps to ensure the long-term sustainability of EPZs.

Another key point of discussion was integrating more SMEs into EPZs. Both parties agreed on the importance of creating an inclusive environment that encourages small businesses to participate in EPZ programs. Mr Richard Omelu reaffirmed EPZA’s commitment to working with KAM to boost economic growth.

He highlighted the shared goal of increasing the manufacturing sector’s contribution to GDP from 7.6% to 20% by 2030, alongside attracting foreign direct investment (FDI) and promoting local procurement through backward integration.

Mr Tobias Alando echoed these sentiments, stressing the role of exports in driving economic expansion and the need for strategic thinking about the future of EPZs, particularly with regard to new investment opportunities for 2030 and beyond.

He emphasized the importance of innovation to align with global trends and attract future-focused investments. Ms. Miriam Bomett also underscored the value of leveraging KAM’s membership database to showcase opportunities as regulatory challenges are addressed.