The report by global software firm SYSPRO and Strathmore University shows that the most important initiatives that can increase Kenya’s industrial competitiveness both for local and export markets are favorable taxes and favorable regional preferential treaties.
“Other factors included reduction in cost of production, upgrading the current technologies deployed and increasing production efficiency,” says the report.
The findings show that the provision of qualified or trained personnel would be suitable for increasing manufacturing production in Kenya, followed by the provision of subsidies and purchase guarantees by the government.
The report shows that energy is the main external factors that adversely affect business operations, followed by political climate, taxes and cheap imports respectively.
Ismail Ateya, dean of research and innovation at Strathmore University said that high software and hardware costs as well as the lack of skilled labor were cited as major hindrances to technology adoption.
“Manufacturers interviewed proposed to have tax incentives for technology purchases, better training for local technology partners, improved availability of new technologies locally, availability of affordable automation and robotics technology as well availability of skilled technical workers,” he revealed.