2 0 1 8 Great strides Together

1 Growth & Gains - Great strides Together CHIEF EXECUTIVE Ms Phyllis Wakiaga, achievements withusaswe prepare for 2019. you to lookat how far we have come andcelebrate these On behalf of my colleagues at theSecretariat, we invite environment. proud and happy to have made this a better business Although notallourbattles were won, we remain long hindered ourabilityto dobusiness competitively. This year hasseenuswinbigonsomeissues that have businesses. will ensure that organisations achieve profitability intheir that we give you, ourmembers,world-class services that The Association hasover theyears worked towards ensuring one year. have made on behalf of the KAM Membershipin the past publication seeksto enlighten you ontheachievements we - GreatGains strides Together Publication for 2018. This annual Welcome to Kenya Association of Manufacturers’ THE 2018 BOARD MEMBERS No. No. 1. 2. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 19. 2018 ReportCard! Submitting Our CEO’S MESSAGE Name Sachen Gudka Gudka Sachen Mucai Kunyiha Flora Mutahi Helen Kimani Helen Kimani Kaushik Shah Kaushik Shah Mahul Shah Mahul Shah Lutaf Kassam Stephen Brooks Bharat Shah Rajan Malde Rajan Malde Rohin Vora Rita Kavashe Joe Muganda Joe Muganda Ciiru Waweru Jane Karuku Bimal Kantaria Bimal Kantaria Pankaj Bedi Rajan Shah Rajan Shah Linus Gitahi Position at theBoard Chairman Vice Chairman Immediate Past Chairlady Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Growth & Organization Skanem Interlabels Ltd Cooper K-Brands Limited Melvin MarshInternational Kevian Kenya Ltd. Safal Group ofCompanies Spin KnitLtd Industrial Promotion Services (K)Ltd Homa LimeCompany Ltd Kenafric Industries Ltd Trufoods Ltd Regal Pharmaceuticals Isuzu East Africa Vivo Energy Kenya FunKidz Kenya Breweries Limited Elgon Kenya Ltd United Aryan (EPZ) Ltd Capwell Industries Tropikal Brands (Afrika) Ltd.

1 Growth & Gains - Great strides Together 2 Growth & Gains - Great strides Together to 15%by 2022. manufacturing sector contribution to GDP the Big4Agenda that seeksto drive the valuable partnerships.This isinlinewith through ourfact-based advocacy and the tenor of discourse of manufacturing sector, theAssociation continued to raise part of our initiatives to reinvigorate the in 2017, compared to 9.2% in2016. As The sector’s growth dropped to 8.37% prioritize astrong manufacturing base. industrialization and why Kenya needsto Association inraising thediscourse on Hence thishasbeen acriticalyear for the growth for thenext 5years. area for thecountry to drive economic manufacturing as a top priority investment In November 2017, the government declared Chairman’s Message next year. This willbearunningtheme for thewhole KAM willcelebrate 60years ofexistence since 1959, year marked withsignificant events bothinthe Headquarters andindifferent chapters,.... Manufacturers embarked onaplanin complement this,Kenya Association of their productivity andprofitability. To accord more supportto SMEsto increase This year, theGovernment committed to forums andinstitutions. representation at various County -based More so, we successfully lobbiedfor a global platform, at the National Level. that Kenyan products are competing on Promotion Strategy, whichseeksto ensure of theNational ExportDevelopment and Trade Area Agreement andthelaunch the ratification ofthe Africa Continental include, thefightagainst illicittrade, and Chapter level. Suchinterventions through ourengagementsat theNational much accomplished throughout theyear With theseinterventions, we have seen the manufacturing sector growth. and sector-specific interventions to unlock constraints to growth, possible solutions that identifiesthemaincross-cutting launched theSector DeepDive Report To supplementtheMPA 2018, we also year. has guidedouradvocacy throughout the and Securingthefuture ofIndustry -which Government-Driven SMEsDevelopment Industry andinstitutional framework, Field, ExportDriven Manufacturing, Pro- namely; aCompetitive andLevel Playing document isanchored onfive pillars, Transformation for JobCreation. The 2018, themedSparkingKenya’s Industrial the Manufacturing PriorityAgenda (MPA) At thebeginningofyear, we launched September 2018, to increase its current SME Headquarters and in different chapters, to interventions to institute a fully-fledged SME acknowledge your contribution, as members Hub that will go in tandem the Government’s of the Association, to Kenya’s economic efforts in this regard. growth since before independence.

Next year presents us with a myriad of To this end, we shall be hosting the largest opportunities to begin to tangibly realize manufacturing expo and summit next year – the goals outlined in the Big 4 Agenda. 2019 dubbed ‘Changamka Kenya’– to symbolize our will be the year to implement some of the historic journey as a country by showcasing proposed solutions by industry to achieve our local products and innovations. low-hanging but very impactful results. Hence, we have a huge role to play to ensure There is no better time to showcase the that we make these changes in time to reap importance of Manufacturing to the country, from global trends and markets, and to build than now. a strong future for our country. Happy Holidays! Lastly, KAM will celebrate 60 years of existence since 1959, next year. This will Sachen Gudka be a running theme for the whole year

KAM CHAIRMAN & Gains - Great strides Together Growth marked with significant events both in the

3 4 Growth & Gains - Great strides Together over astheChairmanofKAMBoard CHANGE OFGUARD: SachenGudkatakes KAM ChairMr. SachenGudkawithimmediatepastChairlady Ms. FloraMutahi Qaribu Inn. K-Brands Ltd, AnalabsLtd, Mashiara Park and of Kzanaka Ltd, whichincludesCooper a Lawyer andtheGroup ManagingDirector The new Vice Chairman,MrMucai Kunyiha is and Rodwell Press Limited. position asCEOofbothSkanem Interlabels manufacturing trends from his current well asadeepknowledge oncuttingedge investment managementproficiency, as the organization extensive financial and Certified accountant, MrGudka brings to An internationally trained Economist and term. of Directors on19thJuly2018, for atwo-year of Kenya Association ofManufacturers Board Mr SachenGudka took over asthe Chairman waste inthecountry. other stakeholders to manageplastic bottle endeavour to partner with Government and one year led the PET Sub Sector in their Directors for five years and has in the past He has been serving on the KAM Board of Sachen Gudka Ms FloraMutahihandsoverleardershipmantletoMr. ADVOCACY POLICY POLICY

5 Growth & Gains - Great strides Together 6 Growth & Gains - Great strides Together KAM launchesManufacturingPriorityAgenda2018 Manufacturing PriorityAgenda2018 wealth creation. the economy resulting injoband the sector’s multiplier effect in This was aimedat stimulating industry. the future ofmanufacturing SMEs development andSecuring framework, Government driven industry policy andinstitutional driven manufacturing, Pro- and Level playing field,Export pillars namely;ACompetitive was driven under five key Transformation for JobCreation, Sparking Kenya’s Industrial Priority Agenda themed This year’s Manufacturing Figure ofachievements Implementation Nothing Done 18% Chart Title Ongoing 64% Completed 18% KAM Chairman, MrSachenGudkawelcomesDeputyPresident MrWilliamRutoduringtheKenyaTradeWeek The summaryoftheachievements include: slow implementation ofcrucialpolicies. impeded by several factors key amongthem However, theimplementation hasbeen and Agencies for implementation. up by the government Ministries, Departments 82% oftheproposed actionshave beentaken

The tender allocation set to commence Following this,atask force ledby DoD KAM engaged the Ministry of Industry, Local procurement of Year. in the2018/2019 Government Financial country’s disciplinedforces. footwear andtextile products for the supply government tenders onboth Sectors to establish theircapacityto Footwear, aswell as,Textile andApparel visited members in theLeather and textile andfootwear products. (DoD) onprocurement oflocally-made Service andtheDepartmentofDefence Trade andCooperatives, Kenya Wildlife products products Textiles and footwear

Strategy

KAM played anintegral partinthe Further ameetingbetween KAMand In collaboration withKAM,theTanzania treatment ofNon-Tariff Barriers. Railway Development Levy (RDL) and of ImportDeclaration Fees (IDF)and on manufacturing including,removal The Association reviewed areas touching Strategy that was launchedinJuly2018. Export Development andPromotion development oftheKenya National ongoing. faced challengesinexports. This is to review standards for products which Kenya Bureau ofStandards resolved Kenya into Tanzania inMay 2018. safety offood products exported by verified the standards, procedures and Food and Drugs Authority (TFDA) Export Development Export Development and Procedures on FoodSafety,Standards KAM -TFDAengagements

7 Growth & Gains - Great strides Together 8 Growth & Gains - Great strides Together KAM engagesKEBSteamonindustrial Concerns

KAM participated invarious Technical Approximately 73% oftheHSChapters Technical Working Group meetingsof Additionally, theAssociation lobbied During the National Preparatory Meeting A submission ofatotal of12sectors on of Tripartite Rulesof Originin2018. Working Groups (TWG) expert meetings have beenconcluded. and HeadingsonTripartite rulesoforigin the Tripartite Free Trade Area finalization from June2018 to June2019. for theextension oftheCETreview EAC andRegional Development. of Kenya’s proposal by The Ministry of presented to theEAC Secretariat aspart of a4bandstructure, whichwas then KAM defended theproposal that consists position ontheissue. Association to inform theoverall National the EAC CETReview was madeby the KEBS Standardization Mark/Permit extendedto3 years Tariff (CET) EAC CommonExternal Review

44 African States outof55have KAM participated at thenational Regional position on all outstanding to ratify theagreement. come into force, we need22countries agreement. For the agreement to 2018, 12 countries had ratified the Agreement. AsofendNovember joined theAfCFTA andsignedthe on 21st March inKigali,Rwanda. the launchofAfCFTA Agreement Text negotiations which were followed by preparatory meetingsfor AfCFTA TWG onRulesofOriginmeetings. remaining onesat thevarious Tripartite agreed uponandEAC negotiated the HS Chapters andHeadingswere Negotiation Meetings Trade Area Africa Continent Free (AfCFTA) Additional Standards Highlights: three (3)years. (KEBS) Standardisation Mark/Permit to the validity ofKenya Bureau ofStandards The National Standards Council approved

Highlights Mark (SMark). Mark (SMark). and in the issuance of Standardization the clearance process of industrial sugar follow uponthedelays experienced in KAM alsoKEBSinOctober 2018, asa standards ofclay manufactured products. manufacturers indevelopment of Kenya to create awareness andto involve Kisumu, KisiiandNyamira inMay 2018 KAM incollaboration withKEBSvisited approved asEAC standards. Additionally, 44draft standards were SQMT Act underreview was approved. standards committee where the EAC KAM participated intheregional

develop acommon EAC position. November andDecember inorder to with otherEAC Partner States in exclusion list. Kenya willnegotiate Rules oforiginandthecriteria for position ontheproposed AfCTFA various Ministries to discuss theKenya KAM hosted Key stakeholders from To create awareness ontheAfCFTA, Liberalization. on AfCTFA RulesofOriginandtariff level to prepare theKenya position KAM isparticipating at theNational Rules ofOriginandtariffliberalization. Outstanding thematic areas include have beenconcluded. (TBTs) and Non-Tariff Barriers(NTBs) (SPS) andTechnical barriersto trade facilitation, sanitaryandphytosanitary Key thematic annexes suchasCustoms

industrial sugarat theport,KEBS; To enhance clearance ofwhite refined Stakeholder engagementsonNTBs (NTBs) Act anddraft NTBRegulation Review oftheNon-Tariff Barriers on time. are now receiving their S-markpermits the Standardization Mark.Members collection of samples and issuance of KAM alsoadvocated for enhanced NTBs relevant stakeholderson Engagement with

conformity. be retested to ascertain quality requirement test shallhave to that have failed conformity On theotherhand,consignments green channel. requirement test shall be given a have passed theconformity from particularsuppliersthat system where sugarconsignments Has introduced arisk-based quality requirements consignments passed KEBS materials where theprevious No longerretests imported raw in product testing to increase operational efficiency Has equippedtheMombasaLab regional Forum on non-tariff participation at the25thEAC Key among this was KAM’s with relevant stakeholders. were documented anddiscussed Various NTBs arisinginyear 2018 proposal was adopted. draft NTB regulation. 80% of KAM Act underEAC review andthe finalize Kenya positiononthe NTB National meetingto review and KAM participated intheKenya

9 Growth & Gains - Great strides Together 10 Growth & Gains - Great strides Together lasting solutions. the relevant authoritiesfor long- Association continues to engage Tariff Barriers(NTBs), butthe with thisregard dueto Non- Some persistent issues still remain export issues were resolved. conducted inJune2018. The origin of theproducts which was regional verification to ascertain Further, KAMadvocated for into theEAC Certificate ofOrigin. assisted inmakingtherightentries on theirexport processes and identifying theshortcomings confectionaries to Tanzania by exporters ofpaperlabelsand The Association alsosupported mainly on: were reported resolved barriers where 6NTBs

Tanzania. price adjustment by lack ofrecognition of paper sacks, paper sacks, tariff treatment for lack ofpreferential value uplifting confectionary treatment for lack ofpreferential products by Kenya, Poultry andpoultry and and confirm paidtaxes long leadtimeto arrived at including: (SCTIFI) meetingswhere someresolution was on Trade, Industry, Finance andInvestment KAM hasparticipated inseveral Sectoral Council Meetings EAC SCTIFI

EAC. localization ofmotorcycle assembly in harmonization ofvalue additionand expedite regional verification to enable The secretariat was also directed to for oneyear upto June2019 was granted. on dutyremission for motorcycle assembly The stay ofapplication oftheconditions affected Kenya’s export were stopped. on textile andraw sugar, that hadnegatively Additionally, theKenya stays ofapplications proposals andpost budgetwere adopted. proposals for 2018/2019. KAMbudget The deliberation ontheEAC budget Kenya export ofFood, Milkand Cosmetics. Tanzania and Food andDrugs Authority on charges required by various Agencies in numerous monetaryand nonstandard by March 2019. This isto address theunfair and make appropriate recommendations applicable to food, drugsandcosmetics Committee to analyse thefees andcharges Regional Task Force by the Standards KAM lobbiedfor establishment ofa EACCMA andRulesofOrigin of thetreaty, custom unionprotocol, EAC secretariat to adhere to theprovisions from Kenya. Tanzania was directed by the issued permitsfor importation of products Tanzania removed therestrictions and on animal and animal products where restrictions anddiscriminatory levies Further KAM advocated for removal of arrival notifications amongothers. declarations, onlinerelease, exit notes and documents suchasmanifests, customs This hasenabledexchange of electronic facilitated export within theEAC Region. faced underSingleCustoms Territory has The continuous resolution ofchallenges KAM engagesKRATeamonFiscal policychallenges

proposals Advocacy forTaxpolicy Network Forum EAC Manufacturers Amendment Bill2018. and Agrochemical) intheTax law manufacturing sectors (Pharmaceutical changes onthetaxpoliciesproposals to KAM successfully lobbied for legislative locally. intermediate products notproduced for capitalgoodsandraw materials and structure andanagreement ontherates the Network Forum onthe4tariffbands Additionally, there was aconvergence by CET structure was developed. common positionontheproposed EAC March where aframework for developing manufacturers network meetingin KAM participated inthe10thEAC including the year onFiscalpolicy matters revenue Authority (KRA) throughout KAM continued to engageKenya and clearance ofgoodsamongothers. valuation, delays inrelease ofentries complains ontariffclassification, members issues, thesehasreduced engagement meetingsto articulate KAM &KRAhave hadgoodquarterly engagements

rate 2%from thecurrent 6%. Reduction of Withholding VAT Export Refund Formulae The need to review the VAT products raw materials andothersteel Duty imposedonmetalsector Excise Tax Refunds for Kerosene KAM/KRA KAM/KRA 11 Growth & Gains - Great strides Together 12 Growth & Gains - Great strides Together 2019. forests hasbeenextended untilNovember However, the ban on public and community Meeting withEnvironment PS, Charles Sunkuli onlogging The engagementsresulted in: period. continuity ofbusiness duringthemoratorium develop short-term solutions to enhance Forestry engagedindustry stakeholders to logging, theMinistry ofEnvironment and Following thenotice onthemoratorium on to guidemanufacturers. An Addendum to theAgreement is in place terms andconditions agreement for suppliers. Kenya, adopted KAMproposals onstandard ShopRite Supermarket, anew retailer store in

gums andresins was alsopermitted Harvesting, transportation, and export of was permitted aswell as products from neighbouringcountries Importation oftimberand forests. The liftingofbanonlogginginprivate forests lifted Ban onlogging in private Shoprite Agreement Scheme (DRS) Duty Remission Facilitation Business

permits/passes AGOA visaand173 work KAM processed 3582 members received andshared with 6 DRSGazettes were processed. were received and 203 DRSapplications 23 verification visitsdone DRS Presidential RoundTable Engagements the Government through theInteragency Additionally, KAMcontinues to work with Association’s lobby efforts against illicittrade. illicit trade, was animmediate result ofthe against counterfeits andother forms of to leadaninter-agency enforcement team The appointment ofMr. Wanyama Musiambo, Key outcomes ofthemeeting include: the shortto medium term were identified. low hangingfruitsthat could beachieved in sector’s challenges and opportunities.Some dedicated to discussing theManufacturing year. The first ofthesemeetings was solely Presidential Round Table (PRT) meetingsthis KAM represented itsmembersin3

Fight againstillicit trade © PSCU Key highlightsfrom thisare: Illicit Trade Subcommittee. Stakeholders Consultative Forum andAnti- Level CEOs Inter-Agency Anti-Illicit Trade collaboration modelwhichincludestheHigh

Busia -Malababorders. sensitization forums at theNamangaand has successfully conducted awareness/ key enforcement agencies in Kenya, Counterfeit Agency (ACA) and other KAM, incollaboration withtheAnti- the MultiAgency Taskforce. worth more thanKshs7.7 Billion,through seizure anddestruction ofillicitgoods The fight against illicit trade has seen the Round Table Presidential at the Kenyatta Uhuru HE President 13 Growth & Gains - Great strides Together 14 Growth & Gains - Great strides Together

Wages for signingby State DepartmentofTrade. The Prompt Payment code isnow ready prompt payment the Government Technical Committee on retailers andmanufacturers, aspartof Code ofPractice between suppliers, role inthedevelopment ofaharmonized The Association alsoplayed acritical from piece-rate EPZ businesses. It was agreed to de-pegminimumwage Labour, for EPZ apparels workers. to beestablished undertheMinistry of productivity andtraining ofworkers is with matters pertaining to wages, A Wages Council, whichwould deal Prompt Payment Energy subject to thefollowing parameters: Commission (ERC),thetaxrebate is Ministry ofEnergy andEnergy Regulatory Through our engagementswiththe on Corporate Tax inFinance Act, 2018. Government introduced a30%taxrebate Energy cost to US$9cents, the Following KAM’s advocacy to reduce

Improved revenues Increase ininvestment capex, and Increase inlocalemployment, Enhanced production,

Round Table Immediate pastChairladyspeakingatthePresidential

continuous advocacy. for users,following theAssociation’s two years for manufacturers andthree for primarypackaging was extended to The renewal periodfor plastic bagsused Period extended packaging Renewal Industrial Plastic

© PSCU Port issueshighlightedinthemedia

supply chain. services for effective andefficientlogistic involved would be able to streamline their which time all government agencies freight tariff rates for next one year. During possibility of extending the promotional review oftheapproved tariff ratesa and Depots, KAMispursuingcomprehensive the MombasaPort andInlandContainer In lightoftheprevailing challengesat 2018. from 30thJune2018 to 31st December of the promotional SGR freight tariff rates We alsosuccessfully lobbiedfor extension competitive: SGR freight ratetomake Review theproposed 15 Growth & Gains - Great strides Together 16 Growth & Gains - Great strides Together Some oftheseincluded: recommendations to theGovernment proposals were adopted asper the Association’s In thisyear’s National Budget,about 75% ofKAM’s Proposals Adopted 75% KAM’sNational Budget DeepDive Report) Kunyiha, KAMChairMrSachenGudkaatthelaunchof KAMSector KAM TimberSectorChairMrHitesh Mediratta, KAMVice ChairMrMucai Report Launched Manufacturing SectorDeepDive

as well. impose USD5perunitor35% importdutyadopted The proposal onthetextile andleather sector to and metalsector. metals to encourage alevel playing fieldinthe steel The 20% Export levy on copper waste and Scrap products. companies andto stimulate localdemandfor theend a view to increase theproduction capacityfor local % from thecurrent 25%to 35%. This was donewith select sectors for example, steel, metal, leather by 10 The increase ofimportdutyfor specific materials in the BigFour Agenda. development anddesignfor chart theway interms ofpolicy submission to Government to Report willprovide acritical sector’s growth potential, the With an aim to unlock the Report inOctober 2018. launched theSector DeepDive membership we successfully contribution by our Thanks to theinvaluable from the current from thecurrent leather by steel, metal, IMPORT DUTY 25% to 35% 10 % 10 % Sector DeepDiveReportmediahighlights 17 Growth & Gains - Great strides Together 18 Growth & Gains - Great strides Together manufacturing sector. future development across the strategies andactionplansfor sound basisfor developing provides Industry witha The findingsofthesurvey sectors. each oftheKAMvalue add policy recommendations for opportunities, challengesand The Survey highlightsthe in November 2018. Manufacturing Survey (MS)2017 Manufacturers launchedthe Kenya Association of launched Survey 2017 Manufacturing Facebook:KenyaAssociationofManufacturers LinkedIn: KenyaAssociationofManufacturers P. O.Box30225–00100,NairobiKenya Kenya AssociationofManufacturers Phone: +254(020)2324817,(20)2166657

Website:www.kam.co.ke

Fax: +254(020)3200030 Twitter:@KAM_kenya MANUFACTURING SURVEY 2017 SURVEY MANUFACTURING A SurveyofKenya'sManufacturingSector-2017 MANUFACTURING SURVEY 2017 Chapter Highlights

19 20 Growth & Gains - Great strides Together Coast Chapter Coast ChaptermeetsTaitaTaveta County Dep.Governor, MsMajalaMlagui Industrial AreaChapterengagesNairobiCountyTradeandInvestmentTeam Industrial AreaChapter

the County BudgetandEconomic Forum (CBEF) Successfully lobbied for Coast Chapter members slot in

the publichealthdepartment. officers throughof the leadership harassment by rogue county Successfully lobbied for reduced ICD. transportation from Mombasato with theSGRoncargo complains around thechallenges the Kenya Railways for reduced Coordinated ameetingwith adopted. County Water andSanitation Policy 80% ofKAMproposals onthe (CBEF) Budget andEconomic Forum Area Chapter slot in the County Successfully lobbiedfor Industrial lobbied Successfully Stones and GlacierSweets Jubilee Steel Ltd, Afrik namely: Salwa Industry, of 4new companies which ledto establishment and MombasaCounty investor meetingin Kilifi Organized apotential Sewerage Company in Mombasa Water & for Coast membersslot Mombasa CityBoard Coast membersslotinthe Successfully lobbied for Eastern ChapterengagesMachakosCountyDeputyGovernor, FrancisMaliti Eastern Chapter Central KenyaChapter

Embu andLaikipiaCounties. members inMeru,Nyeri, KAM services reach to KAM sub-committee to increase Formed KAMMt.Kenya Company Board slot intheWater &Sewerage Central Chapter members Successfully lobbiedfor Economic Forum (CBEF) slot intheCounty Budgetand Central Chapter members Successfully lobbiedfor Chapter of technical graduates inthe funding to improve theskills Secured oneyear GIZ Central KenyaChapterCommitteeduringtheAGM Successfully lobbied lobbied Successfully members individually as KAM Quarry owners to register for recruitment of10 government. Machakos County between KAM and working committees formation of sectoral Successfully lobbiedfor & Sewerage Board slot intheMavoko Water Eastern Chapter members Successfully lobbied for Board slot inMavoko Municipal Eastern Chapter members Successfully lobbied for 21 Growth & Gains - Great strides Together 22 Growth & Gains - Great strides Together South RiftChapter Nyanza/Western Chapter KAM Western Chapter meets Kisumu County Governor Prof. Anyang’ Nyong’o KAM WesternChaptermeetsKisumuCountyGovernor Prof. Anyang’Nyong’o

Municipal Board Chapter members slotinNakuru Successfully lobbied for South Rift 2021/22. reviews for theperiod2017/18 to to friendlyNAWASSCO water tariff in Nakuru County. This hasalsoled among KAMmembersoperating reduced water supplyinterruptions related water supplychallengesand improved response to reported power engagement whichhassecured and Sewerage Company direct Coordinated aKPLC-Nakuru Water Energy. been approved by theMinistry of manufacturers. Proposal hassince Area asway ofboosting securityfor of street lightsinNakuru’s Industrial Successfully lobbiedfor theinstallation Economic Forum (CBEF) members slot in the Kisumu County Budget and Successfully lobbiedfor Nyanza/western Chapter Nakuru County Governor, Lee Kinyanjui hosts Investors Conference Cocktail Nakuru CountyGovernor, Lee KinyanjuihostsInvestorsConferenceCocktail

slot inNakuru County environmental committee Successfully lobbied for SouthRiftChapter members slot inNaivasha MunicipalBoard Successfully lobbiedfor SouthRiftChapter members forum Mobilized Kes. 500, 000 to support South Rift Chapter

Region Economic Bloc(LREB). of County fees by theLake prioritization of harmonization Successfully lobbiedfor 30,000 inKisiiCounty. fee from Kes. 60,000 to Kes. reduction ofdistribution permit Successfully lobbiedfor Sewerage Company slot inKisumuCounty Water & western Chapter members Successfully lobbied for Nyanza/ City Board in theCounty KisumuCounty Western Chapter membersslot Successfully lobbied for Nyanza/ Chapter EngagementPictorials North RiftChapter

Company (ELDOWAS) Eldoret Water andSanitation to secure arepresentation at the The Chapter hasalsomanaged and oneintheprogress. to industries, five have beendone Out ofthesixkey roads leading committee Uasin GishuCounty Infrastructure Rift Chapter membersslotinthe Successfully lobbiedfor North Kajiado CountyGovernor, H.E. Joseph OleLenku Head ofMembershipTobiasAlando meets Trade andIndustrialization Courtesy calltoUasinGishuCountyCEC, Gishu County & CourtesycalltotheCECTradeIndustrialization, Uasin North RiftChapterengagesUasinGishuCEC,Education Nandi HillsTowncleanup National Park Launch ofRecyclingStationatNairobi 23 Growth & Gains - Great strides Together 24 Growth & Gains - Great strides Together SUSTAINABILITY

Kenya. a quest to reduce theunemployment rate in first-ever TVETJobSummitinMay 2018, in Furthermore, KAM and GIZ launched the Manufacturing jobsearch KAM, GIZ launchportalto improve This year’s achievements include: Training (TVET)Program inJanuary2017. launch a Technical, Vocational Education and Employment andSkillsfor Eastern Africa to Zusammenarbeit (GIZ) E4D/SOGA - Deutsche GesellschaftfürInternationale Development Cooperation through the country, KAMpartnered withGerman To promote skillsdevelopment inthe TVET Program In 2018, theAcademy conducted: to enhance productivity andpersonalgrowth. quality manufacturing practices guaranteed continued to drive theexecution ofhigh KAM through theManufacturing Academy Academy Manufacturing I. SKILLDEVELOPMENT

300 graduates already employed for internship 220 graduates sofar placed inindustries readiness 283 graduates were trained onwork 8 Work readiness workshops conducted TVET Program 20 new companies participated inthe 382 trained 16 trainings Forum inNyeri Competency BasedEducation&Training(CBET)Awareness Machine Operations Control, Mechanical Maintenance and Heavy this phase include:Welding, Instrumentation in January2019. The unitsto becovered in 300 students expected for thefirst intake rolled outinsixTVETinstitutions withupto The 2ndPhase oftheTVETProgram willbe demands ofindustry. (what atrainee cando) in linewiththe CBET focuses ontheoutcomes oflearning initiatives Chapters aspartof ourCounty engagement Based Education andTraining (CBET) inthe the KAMTVETProject dubbedCompetency This year, we launched thesecond phaseof Second PhaseofTVET Program Launched The event hosted 150participants institutions. job seeking graduates from technical from businesses andindustries andtargets graduates. Itissetto host jobopportunities industries andjob-seekingtechnical skills The site willactasadirect linkbetween 25 Growth & Gains - Great strides Together 26 Growth & Gains - Great strides Together initiatives. and green growth policy industry onenergy management achievements andchallengesby in Kenya, highlighted the Renewable andEnergy Efficiency Catalysing Sustainable The conference, themed efficiency inthe country. renewable energy andenergy in July2018 aimedat promoting two-day cleanenergy conference Energy andPetroleum hosted a partnership withtheMinistry of Manufacturers (KAM)in Kenya Association of Efficiency Conference KicksOff Renewable Energy &Energy Energy Efficiency II. GREENECONOMY Renewable Energy&EfficiencyExhibition Panel onRenewableEnergy&Effficiency towards agreen economy. financing manufacturers’ initiatives options andexplored ways of looked at sustainable energy Mix: The Future ofIndustrial Energy, The forum, themedCaptive Energy economy. of promoting Kenya’s green the energy sector withtheaim together allstakeholders in of manufacturers (KAM) brought In April2018, Kenya Association promote Kenya’s green economy stakeholders converge to Manufacturers, energy 14th EnergyManagement Awards2018 Bidco Africawins14thEnergyManagementAwards in theirenergy consumption through that have achieved significant reductions manufacturing’, awarded over 20companies resource efficiency towards competitive local The awards, themed‘setting thepace in in April2018. this year’s Energy ManagementAward held Bidco Africa bagged the overall winnerof Energy ManagementAwards Bidco Africa takes top spotat the14th and cost reductions. and in the process made significant energy energy managementprinciplesandpractices, efficiency through theapplication ofmodern major andsustainable gainsinenergy and recognize enterprises that have made culture ofenergy efficiency and conservation, The awards are geared at encouraging a and technologies. implementation ofenergy efficientmeasures 27 Growth & Gains - Great strides Together 28 Growth & Gains - Great strides Together In 2018: Agency (AFD) Green LabelProgramme. The SUNREF isaFrench Development solutions aimedat mitigating climate change. KAM continued to provide green energy Resource andEnergy Finance (SUNREF), Through the Sustainable UseofNatural Green Financing EMA 2018 HallofFame 14 13 12 11 10. 9. 8. 7. 6. 5. 4. 3. 2. 1. No.

the year 18 green projects were certified during Most Improved Award (Small &MediumEnergy Consumers) Best New Entrant Award (Large Energy Consumers) Best New Entrant Award Sustained HighPerformance Award Energy Innovation Award Best Energy ManagementService Sector Award (Small Energy Consumers) Electricity Savings Award (Medium Energy Consumers) Electricity Savings Award (Large Energy Consumers) Electricity Savings Award (Large Energy Consumers) Fuel Savings Award (Medium Energy Consumers) Fuel Savings Award (Small Energy Consumers) Fuel Savings Award Best Energy ManagementTeam Award Overall Energy ManagementAward Award Categories

Farmer’s Choice Executive Residence by Best Western Sotik HighlandsTea British AmericanTobacco Kenya -Nairobi James Finlay –SaosaTea Extract Factory Sarova Lodge LionHillGame Earth OilLtd Gitugi Tea Factory James Finlay –SaosaTea Extract Factory British AmericanTobacco Kenya -Nairobi Associated Battery Manufacturers Sarova Lodge LionHillGame Mombasa Cement Bidco Africa Winner project portfolio 30 new projects were includedinthe total of20participants 2 trainings heldfor partnerbanks witha undertaken 3 short term technical assistance Safisha Westy&KisumuCountyMashinaniCleanup From thismeeting,thepartiesagreed to: the framework ofGreen Economy Strategy. clean, healthy andsecure environment within This isgeared towards thepromotion ofa management ofPETbottlesinKenya. him on the existing partnership towards the Secretary (CS), Mr. Keriako Tobiko to brief (KAM) met the new Environment Cabinet Kenya Association ofManufacturers consumption ofplastics inKenya’, theforum opportunities for sustainable production and Under thetheme‘Business andenvironmental 2018 new plastics economy inKenya inJanuary explored opportunitiesfor atransition to a Industry andtheEmbassy ofDenmark in partnershipwithConfederation ofDanish Kenya Association ofManufacturers (KAM) PET WasteManagement

KAM,CSTobiko agreementonmanagementofPETbottles KAM, Confederation of Danish Industry & Embassy of KAM,Confederation ofDanish Industry&Embassy of up theenvironment religious fraternity and academia to clean County Governments, civilsociety, across Government Ministries, Agencies, Mobilize support from stakeholders Denmark partnertopromotewastemanagement and PETrecycling initiative. with theGovernment to kickoffanadvocacy practice. The PET sector Group has partnered solid waste inthecountry asaglobalbest- with theindustry’s commitment to manage Last year, KAMlaunchedaPETsector group potential ofplastics injobandwealth creation. plastic consumption, aswell astheeconomic sought to promote environmental friendly

Partnerships to enhance Partnerships toenhance and education campaigns Roll outanti-littering publicawareness signed inthenext meeting. memorandum ofunderstanding to be Document thesecommitment into a environment the impactsofplastic bottlesinthe responsibility inorder to minimise on theconcept ofextended producer schemes for plastic bottles,anchored Develop comprehensive recycling Waste management Take BackandExtended Producer establish andimplementtheagreed As partoftheagreement, KAMwill PET plastic waste management. Hip HopCityandPETCO Kenya for of Waste Recyclers Secretary, Dandora Authority (NTSA), Kenya Association the National Transport andSafety Authority (NEMA),signedaMoU with National Environmental Management of Environment andForest and KAM, withthesupportofMinistry 29 Growth & Gains - Great strides Together 30 Growth & Gains - Great strides Together KAM, PETCOKenyasign agreementofCooperationonPETwastemanagement Services segregated bin. the launchofKenya Wildlife Nairobi CleanUpInitiatives and participated inthemonthly Additionally, theAssociation - KisumuCounty. Nairobi County andKisumuTown - Narok County, Westlands - - NandiCounty, KilgorisTown activities inNandiHillsTown To this end, organized clean up other government agencies. with County Governments and awareness creation inpartnership undertake clean-upactivitiesand Bottles. Additionally, KAMwill Responsibility schemesfor PET schemes for thePETplastic bottles. take-schemes and extended producer responsibility The framework provides for theimplementation of Manufacturers andthegovernment. (FOC) signedbetween theKenya Association of the enactmentofaFramework ofCooperation The forum was heldto show progress madesince bottles. promotes thecollection andrecycling ofplastic manufacturers to commit to aschemethat Exhibition 2018. The Ministry encouraged more hosted thefirst ever National PET Forum and KAM inpartnershipwiththeMinistry ofEnvironment KAM, Ministry of Environment KAM,Ministry ofEnvironment Forum andExhibition 2018 host firsteverNational PET (Ghana) &MayleenKyster(SouthAfrica)duringtheWIMGaladinner Women inManufacturingSteward,FloraMutahiwithKateQuartey-Papafio WIM Logo unveiled in themanufacturing sector. impossible for women to venture andthrive the aimofbridginggapsthat make it DinnerinMarch(WIM) Gala 2018 with KAM hosted the Women in Manufacturing industrial growth Women Industrialists mapoutways to drive III. INCLUSIVITY Womenin Manufacturing industrialization goal. economic growth at the core oftheir centre inclusivity and sustainable (SDGs) andAgenda 2063 which the Sustainable Development Goals launched in 2017, anchorsitsethoson Women inManufacturing Programme, program withintheinstitution. was alsoheldto strengthen theWIM The first ever WIM Steering Committee ethos. Empowerment Principles into their how they can institute the Women educate businesses inthesector on partnership withUNWomen, to Empowerment Principlesin We alsohosted theWIM-Women and grow value chaininthecountry industries to create productive jobs There isgreat potential for women-run business linkages industries through business-to- also seeksolutionsto scaleuptheir larger database where they can finance andmentorship from KAM’s assistance, facilitating access to businesses through technical the value andcapacityofthese The WIMplatform looksat increasing 31 Growth & Gains - Great strides Together 32 Growth & Gains - Great strides Together Industrystakeholderspartnertoboost manufacturingSMEsinEastAfrica seven modules: The program trained manufacturing SMEson and diversification oftheircurrent operations. businesses to prepare for growth, expansion The Programme encourages established through Business Growth Programme (BGP). business practices to enhance scalability, oriented enterprises withsustainable This year, theAssociation equippedgrowth- KAM Business Growth Program

SMEDevelopment Good Manufacturing Practices Human Resources Management Financial Management Strategy SupplyChainManagement Strategy Market Development andPenetration Product Design Business Strategy and its member institutions. and itsmemberinstitutions. the East African Business Council (EABC) German Industries (BDI)inpartnershipwith and Development (BMZ)andFederation of Federal Ministry for Economic Cooperation The project is a joint initiative between German with at least 10employees. turnover ofUSD50,000 to USD5million, a minimumof3years andhave anannual the EAC region, whohave beenactive for The pilotphasetargeted 60companies in industries. tailor-made partnershipswithGerman through individual coaching, training and business know-how and technical expertise Business for Development, seeksto provide The project, dubbedCreating Perspectives: business operations. SMEs inEast Africa by scalingup their project seekingto promote manufacturing In August 2018, KAMandGIZlauncheda KAM, GIZlaunchregional SMEProject various socialinvestments. community andcontributes substantially to thesocio-economic development ofthecounty through The saltindustry isakey sector inKilifi county, andemploys over 1,100 workers directly from the sub- County. Rights violations arisingfrom theactivitiesofsaltmanufacturing companies inMagariniMalindi Hedwig Ongudi Corruption &EconomicCrimesDivision, Justice High CourtJudgeandPresiding -Anti- Inquiryinto2006 Public allegations ofHuman 2017 by KNCHR,was premised uponthe The audit,that was conducted inFebruary salt manufacturers. Human RightsPrinciplesandStandards by Report to establish compliance withthe InquiryAudit launched theMalindiPublic Commission on Human Rights (KNCHR) in partnershipwiththeKenya National Kenya Association of Manufacturers (KAM) Rights compliance toHuman a reportonsaltsector’s KAM, KNCHRlaunch PRACTICES IV. ETHICALBUSINESS enforcement. on comparative perspectives ofanti-corruption governance andrevenue, andstakeholder engagement anti-corruption, undertakinganti-corruption auditson include adoptinglegal compliance requirements on manufacturing sector. Strategies discussed at theforum corruption onthesocialandeconomic growth ofthe This partnership seeksto highlighttheimpactof the private sector. that promote ethicalandlegalbusiness practices within with theUniversity ofNairobi (UoN)to develop strategies Kenya Association ofManufacturers (KAM)partnered ness practices promote ethicalandlegalbusi- Industry, Academiapartnerto Malindi PublicInquiry Reportlaunched 33 Growth & Gains - Great strides Together 34 Growth & Gains - Great strides Together Location: 15Mwanzi Road oppWest Gate Mall,Westlands, Nairobi, Kenya M: +254(0) 722201368,734646004/5|T: KAM_Kenya | P. O. Box 30225 -00100Nairobi, Kenya E: [email protected] |W:www.kam.co.ke Kenya Association of Manufacturers Kenya Association of Manufacturers +254(020) 232481