In 2024, total approved credit to the manufacturing sector dropped to KSh 563.0 billion, according to the latest Economic Survey by the Kenya National Bureau of Statistics (KNBS).
- •The drop was largely due to a decline in credit from commercial banks, which fell to KSh 560.6 billion from 637.5 billion the previous year.
- •According to the KNBS Survey, the manufacturing sector grew by 2.8% in 2024, up from 2.2 per cent in 2023, contributing 7.3% to the GDP.
- •The volume of output increased by 4.4% compared to 2.8% the previous year despite the decline in credit to the sector.
Manufacturing now accounts for 11.5% of formal employment after it increased its workforce by 1.9% to 369, 200 people.
Investment in EPZ manufacturing activities increased by 5.6% to KSh 34.1 billion in 2024, while cumulative investment value in Export Processing Zones (EPZs) rose by 15.0%, reaching KSh 171.9 billion.
Agro-based industries recorded growth of 9.8%, largely driven by a rebound in sugar production, which rose by 72.5%. Sugar experienced the steepest drop in average producer prices at 28.8%, followed by maize flour at 21.5%.
Cement production declined from 9,616.1 to 8,852.6 thousand tonnes, similarly cement consumption and stocks declined from 9,195.9 to 8,537.0 thousand tonnes, in 2024.
The Producer Price Index (PPI) decreased to 139.04 in 2024, from 140.20 in 2023. The largest price drop was seen in the manufacture of Pharmaceuticals, Medicinal, Chemical, and Botanical Products, which fell by 9.96%. Whereas the Manufacture of Non-Metallic Mineral Products saw the biggest price increase of 30.44 per cent.
Credit approved by industrial financial institutions rose from KSh 1.9 billion in 2023 to KSh 2.3 billion in 2024. The number of projects financed by development finance institutions decreased from 362 in 2023 to 351 in 2024, reflecting a slight reduction in project funding.
