Kenya: Industrial growth is vital to economic development with a potential to contribute significantly to poverty reduction.

Kenya should be enabled to participate more fully in greener international supply chains for these and other environmental goods and services. The main stakeholders to be involved, in addition to the private sector, are Ministry of Environment, Water and Natural Resources.

The contribution of manufacturing output to total national income is generally low (9.4% in 2011). However, positive performance in industrial growth and an increase in foreign direct investment (FDI) in industries in Kenya indicate a potential for industrial take-off (FDI net inflows increased from 0.3% of GDP in 2008 to 1.0% in 2011). The challenge is to ensure that environmental best practices are incorporated at these early stages of industrialisation whenever manufacturing investments are being considered. Industrial growth is vital to economic development with a potential to contribute significantly to poverty reduction. This will include national efforts to promote the development of SMEs. For
example, industries that participated in a project on promoting resource efficiency were able to realise savings on water and energy of 20% to 35% through application of no-cost and low-cost options identified and implemented through the RECP programme. This type of activity needs to be urgently scaled up, also to direct FDI to cleaner and more recent efficient enterprises and entrepreneurs.

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