The Kenya National Chamber of Commerce and Industry (KNCCI) has challenged Chinese investors to move beyond traditional supplier relationships with Kenya.
Instead, the chamber is urging investors to embrace partnerships that incorporate financing, operator training, maintenance services, spare parts supply, technical support and technology transfer to support Kenya’s industrialisation agenda.
KNCCI President Erick Rutto said Kenya needs collaborations that build local production capacity rather than simply facilitate the importation of equipment.
He spoke on Wednesday during the opening of the three-day Africa International Construction Machinery, Mining Machinery, Agricultural Machinery, Automobile and Motorcycle Parts, Electromechanical and Hardware Products Expo (AICMEC 2026) in Nairobi.
Rutto noted that while access to modern machinery remains critical for improving productivity and competitiveness, long-term value will only be achieved if investors support the development of local skills, technical expertise and after-sales service ecosystems.
He called on Chinese manufacturers to view Kenya as a strategic hub for investment, assembly and regional expansion.
“Kenya needs partnerships that provide financing, operator training, maintenance, spare parts, technical support and technology transfer,” Rutto said.
“I therefore encourage participating manufacturers to view Kenya as a strategic base for investment, local assembly, distribution and regional expansion.”
He further urged investors to establish service centres, train Kenyan technicians, collaborate with universities and Technical and Vocational Education and Training (TVET) institutions, and develop affordable leasing and financing models for businesses seeking to modernise their operations.
According to Rutto, Kenya imported goods worth Sh2.77 trillion in 2025, including Sh389.9 billion worth of industrial machinery, while China remained the country’s largest source of imports at Sh671.2 billion.
He notes that the growing trade relationship should now be leveraged to strengthen domestic manufacturing, value addition and export competitiveness.
“Through the KNCCI China Office, our focus is to facilitate access to affordable and quality machinery, technology transfer, reliable suppliers and investment partnerships for Kenyan businesses,” Rutto said.
He added that Kenya must use imported machinery to process and package products such as tea, coffee, fruits, vegetables and minerals before exporting them to international markets.
The Chamber’s call comes as the government pushes for a more industrialised economy under the Bottom-Up Economic Transformation Agenda (BETA).
Principal Secretary for Industry Juma Mukhwana said Kenya’s economy expanded by 4.6 per cent in 2025, supported by growth across key industrial sectors including construction, mining and automotive assembly.
Mukhwana noted that the construction sector rebounded strongly to grow by 6.8 per cent in 2025, while mining and quarrying expanded by 14.9 per cent.
Local vehicle assembly also increased by 18.5 per cent to 13,692 units, signalling growing opportunities for industrial investment.
Despite the gains, the PS acknowledged that manufacturing remains under pressure, contributing only 7.1 per cent of GDP in 2025 due to high production costs, energy expenses and competition from imports.
“Our goal is to raise the manufacturing sector’s contribution to GDP to 15 per cent by 2027,” Mukhwana said.
He noted that the government is supporting industrial growth through initiatives such as Special Economic Zones, local content requirements, County Aggregation and Industrial Parks and a Sh13.1 billion Samurai Bond aimed at helping automotive parts manufacturers acquire advanced machinery.
The expo has brought together more than 200 enterprises from China and Africa, including major manufacturers in construction, mining, agriculture, automotive and industrial equipment, providing a platform for investment discussions and technology-sharing partnerships expected to deepen Kenya-China economic cooperation.
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