A survey conducted by SYSPRO and Strathmore Business School has revealed that high costs of production and lack of advanced technologies are the major hurdles faced by Kenyan manufacturers. SYSPRO is a world-class provider of industry-built Enterprise Resource Planning (ERP) software for manufacturers and distributors.
The survey interviewed 100 companies spread across 12 sectors of the production and manufacturing sector in Kenya. The study showed that 83 per cent of manufacturers are semi-automated while only 11 per cent are fully automated. Most of the businesses use outdated production units due to the high cost of spare parts, lack of locally made spare parts, and the existence of counterfeit products. Businesses also stated that expensive software and hardware, and the lack of trained personnel as major hindrances to the adoption of modern technologies.
SYSPRO’s Head of Channel, Pravir Rai noted that his company offers affordable technology to manufacturers. “Keeping IT costs low is very important for businesses particularly SMEs. With SYSPRO’s ERP solution, we offer choice and flexibility,” he said. Their products are divided into modules which businesses can buy as the need arises.
The manufacturing industry is one of the key priority areas for the Kenyan government. The sector added 9.2 per cent to Kenya’s economy and employed 12 per cent of the formal sector workers in 2016. The government aims to increase productivity and enhance the competitiveness of the products in local and international markets.
The interviewees urged leaders to improve on infrastructure, create favourable tax systems, and develop training programs on advanced systems to make the manufacturing more competitive and attractive to investors.
