Kenya’s manufacturing sector aims to add 15 percent to the economy by the year 2022. Despite being an important pillar for economic growth, the sector currently contributes less than 10 percent of the GDP.
SYSPRO, a global technology company offering software solutions and industry expertise to manufacturers and distributors, and Strathmore Business School recently conducted a survey on the manufacturing sector in Kenya.
The study found that most companies do not run optimally. According to the research findings, only 46 percent of the companies in manufacturing and distribution operate a full 8 hours a day while 47 percent of the businesses run between 6 – 8 hours a day. The survey also showed that only half of the manufacturers and distributors run 3 – 5 days a week.
The respondents revealed that the majority of firms use outdated technology to run their businesses. 83 percent of manufacturers are semi-automated while a measly 11 percent are fully automated. 6 percent of producers operate on fully manual systems.
As per the research findings, most businesses operate sub-optimally due to diverse challenges such as; high energy costs, lack of access to funds, lack of automation, high cost of technology, shortage of skilled workforce, and lack of market for goods.
Speaking during the launch of the report, SYSPRO’s Head of Channel Pravir Rai emphasized the need to keep technology costs down for manufacturers. “Keeping IT costs low is very important for businesses particularly SMEs,” he said. “With SYSPRO’s ERP solution, we offer choice and flexibility,” he added.
The MD of the software company Mark Wilson revealed that the survey aims to identify opportunities and challenges in manufacturing and establishing ways to solve the challenges.
