President William Ruto addressed the Industrialisation Summit and Changamka Shopping Festival at KICC.
President William Ruto promises cheaper credit and stronger local production to expand manufacturing and create one million jobs.
President William Ruto has reaffirmed a manufacturing target of 20 per cent of Kenya’s Gross Domestic Product by 2030. His administration aims to create one million jobs through increased local production and value addition.
Speaking at the Industrialisation Summit and Changamka Shopping Festival at Nairobi’s KICC on Wednesday, Ruto urged Kenyans to buy local goods. He said domestic spending would support businesses, generate employment and keep wealth within the economy.
However, Ruto acknowledged that manufacturing growth remained below expectations. He cited sector growth of 2 per cent in 2025, against overall economic growth of 4.6 per cent.
Housing and credit underpin manufacturing target
Manufacturing accounted for 7.1 per cent of GDP in 2025, Ruto said, highlighting the distance to the 2030 goal. He called for faster progress towards producing finished goods for domestic and export markets.
Meanwhile, the President identified affordable housing as a major source of demand for Kenyan manufacturers. He said 303,910 housing units were at various stages of completion across all 47 counties.
The projects require cement, steel, glass, tiles, timber, doors and windows, among other construction products. According to Ruto, local suppliers provide 97 per cent of the programme’s materials, while Jua Kali contracts total Sh61 billion.
To support further expansion, he said the government was finalising an Industrialisation Fund offering single-digit interest rates. Manufacturers would use the credit to increase production, acquire modern technology and become more competitive.
Ruto also said the Hustler Fund had advanced Sh98 billion to small businesses without conventional collateral. He expected a further Sh5 billion in disbursements by year-end.
Internships and procurement training planned
Alongside financing, Ruto called for closer partnerships between manufacturers and technical training institutions to strengthen industrial skills. He announced plans for 50,000 government internship opportunities beginning in January 2027.
He also challenged private employers to offer another 50,000 placements, bringing the combined target to 100,000. Companies paying interns stipends would be able to offset those expenses against their tax obligations, he said.
In addition, the government plans to train 600,000 young people to pursue public procurement opportunities. Ruto said the programme would progressively expand to one million participants.
The initiative would provide government-funded virtual training, business registration support and enterprise development assistance. It targets participation in the Access to Government Procurement Opportunities programme, which reserves 30 per cent of opportunities for youth, women and persons with disabilities.
Beyond Kenya, Ruto urged manufacturers to pursue regional and international customers. Investment, Trade and Industry Cabinet Secretary Lee Kinyanjui also encouraged value addition, warning that avoidable imports shift employment opportunities abroad.
