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 KENYA ASSOCIATION
OF MANUFACTURERS |
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Interview with:
Mr Chris Kirubi,
Chairman
Nairobi, April 12th, 1999
Contact:
Westalnd, Peponi Rd, PO Box 30225, Nairobi
Tel: +254 (2) 746007 / 21 / 22
Fax: +254 (2) 746028 / 746030
Email: kam@users.africaonline.co.ke
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KAM was created in 1959 to unite industrialists. Could you tell us briefly what the role for the Kenya Association of Manufacturers is today?
The Association was created to bring the large manufacturers together and to be able to coordinate their needs and their discussions with the government. It has evolved over the years and become a major pressure group, while at the same time it has become an advisory body that holds several meetings with the government advising the government on various issues regarding the industrial sector.
You are known for having some clashes with the Government regarding some of these issues .
We do not really clash, it is a question of bringing out issues strongly and straightly, without fear. My role as spokesman for other industrialists requires me to articulate their needs and also to pinpoint government failures in certain sectors of the economy. Sometimes we feel that the government may not be aware of its inadequacy in policies implementation and we have to point these things out to them, while at the same time we have to work together to try to resolve these issues.
What are the main areas you operate on?
We do discuss issues on economic policies, tax revenue basis, insecurity issues. We also discuss with the government external trade and bilateral trade between Kenya, its neighboring countries and the international community.
We hold talks with several Ministries such as the Ministry of industry, Ministry of Trade, Ministry of Finance and, of course, the Ministry of Transports and Communications, because we must be able to transport and move the goods in the best possible conditions.
One of your corporate missions is to facilitate industrial growth and development. How do you do that?
We encourage our members to invest in this region. We also do this by talking to visiting delegations who want to invest in the region and who need some information to do so. In fact we act as a resource organization who is able to advise other investors, share our experiences with them and try to unblock any bottle-necks they may experience while investigating their investments in this region. Likewise we encourage our own members to expand their operations and to invest more. In that regard we continue to fight for them to get better terms on investment and to resolve any other problems they may be experiencing.
Your organization also advises on potential markets. What are today the most interesting markets for Kenyan exports?
I think the most important markets are our immediate neighbors within the region: Kenya, Uganda, Tanzania, Somalia, Rwanda, Burundi, etc. The rest of the neighboring countries, such as Congo (when they stop fighting) will also become very interesting markets. We feel we must first deal with the markets next to us. It is easier to understand the needs of our neighbors. We have an advantage on these ones because of transport cost.
Do you have an international policy?
We would like to expand to foreign markets, but very few of our companies are fit to compete in the international market. Our costs of production are much higher, our labor is good, but it is not yet technically well trained to handle international trade, although it can be trained. There are tariffs and barriers in these markets that stop us exporting to them. We wish the international community could open their markets for us. Instead of giving us aid, they can open up their markets so we could make it on our own.
Kenya depends considerably on foreign aid.
If the western world could encourage us to produce and to get access to their markets and remove tariff barriers instead of giving us aid, I think Africa could develop much better. The Lome convention and the new American initiative (AGOA) are some of efforts that, if implemented properly, could assist us to become economically independent, rather than being dependent on foreign aid. | Isn't it dangerous though, for Kenya and for some of its neighboring developing countries to open up their barriers?
They should not be totally open. We ought to get concessions as a developing economy that America would like to encourage to grow. That way we can become consumers of some of their finished products. We cannot compete with America on the same terms, nor can we compete with Europe on the same terms. American standards of manufacturing are very highly sophisticated and unit costs are very low. We therefore need a catch-up time, a period where our goods are given certain concessions.
How is Kenya planning to attract foreign investors?
Kenya has been a regional center for the countries around for a while. We have enjoyed relative peace for a very long time. Kenya also has a very educated population. We have relatively good communications, air transport, roads and rails connecting us with our neighbors and a very good port. If well managed, it has a very big potential for many more imports. This makes Kenya a natural regional center.
One of your targets is to increase the number of members in order to cover as many industries as possible, becoming the voice for the manufacturing sector. How are you planning to attract members into your Association?
My aim is to bring in anybody who is willing to invest in large and medium industries. Where possible, I would also like to bring in some of the smaller industries that have potential for growth. In order to attract them we are proving to them that we are relevant to their business, that we can give service, and that we can intervene on their behalf on their issues and problems within the administration. We are getting a lot of people, even non-manufacturers, who want to become associated members with us, such as banks, large trade organizations, insurance companies, etc. We do hope that eventually we can build a big business organization that drives the economy, that talks and makes sure that the right things are happening for this country, for the economy and for the businesses.
You are said to have given the KAM a higher public profile as an outspoken critic of the government. What is you aim for the future?
Our medium-term goal is to remove all the stapling blocks, all the hindrances that affect the growth of business, i.e., to improve infrastructures, roads, water supply, the energy sector and, of course, the security. We want to be able to discuss with the government, see that our currency is stabilized and our banking sector operating in an efficient and predictable manner. We want to make sure that the stock market is operating and is efficient and reliable both internally and internationally.
Is there anything else you would like to add?
In the long-term we would like Kenya to be fully industrialized and to join the industrial nations of the world. For the Americans, Kenya and the East African Region have major potential for new investors. Africa has hardly been tapped, it is a good market, but unfortunately many people only judge Africa from the press reports on political news. What we would like to see is American businessmen visiting us, interacting with the people who are already operating here. We may have a few small problems. If we join together with more large investors we can resolve any small issues that affect the proper flow of business and we can make Africa a better regional market for investments than Asia. |
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© World INvestment NEws, 1999.
This is the electronic edition of the special country report on Kenya published in Forbes Global Magazine.
November 29th 1999 Issue.
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