Stanbic Bank is thrilled to announce its partnership with the Kenya Association of Manufacturers (KAM) to sponsor this year’s Changamka Shopping Festival, under the theme: “Celebrating the Ingenuity of Kenya’s Manufacturing Sector.” This theme reflects our unwavering commitment to driving the growth of local industries and supporting the manufacturing sector with innovative financial solutions.
The Economic Impact of Kenya’s Manufacturing Sector
Kenya’s manufacturing sector remains a vital pillar in the country’s economy, contributing 7.8% to the national GDP and generating Ksh 3.18 trillion in 2022. With over 362,000 direct jobs, the sector also stands as the largest private-sector employer in the country.
The Kenyan government’s 2030 Agenda aims to increase the sector’s GDP contribution to 20% by 2030, an ambitious strategy with the potential to create over one million jobs. Events like the Kenya Manufacturing Summit and Expo play a crucial role in highlighting locally manufactured products while addressing essential topics such as policy reforms, market access, and attracting more investment.
At Stanbic Bank, we wholeheartedly believe in the “Buy Kenya, Build Kenya” initiative, which unites perfectly with our strategy to promote local industries. Through market facilitation, trade promotion, and financial inclusion, we are committed to empowering businesses to reach their full potential.
Empowering SMEs: The Heart of the Manufacturing Sector
Small and Medium Enterprises (SMEs) make up over 80% of Kenya’s manufacturing sector. Stanbic Bank recognizes their importance, and our tailor-made SME solutions are designed to support their growth. These solutions include access to affordable financing, advisory services, and digital banking tools that simplify business operations.
As part of our ongoing SME Campaign “Unlock New Horizons,” we continue to walk alongside SMEs, providing the financial resources and tools necessary to scale their operations. By offering products like working capital loans, LPO financing, and trade finance, we ensure businesses can grow sustainably.
Addressing Challenges: Energy Costs and Financing Solutions
One of the most pressing challenges manufacturers face is the high cost of electricity, which hampers competitiveness. Stanbic Bank is addressing this through renewable energy financing solutions, including solar financing, which has proven to reduce energy costs by up to 30%.
In addition, our Vehicle and Asset Financing (VAF) and leasing solutions support the acquisition of energy-efficient machinery and equipment. These options not only reduce operational costs but also enable businesses to meet their Environmental, Social, and Governance (ESG) goals, enhancing their competitiveness on the global stage.
Access to credit remains another significant hurdle for many manufacturers, particularly SMEs looking to expand. Stanbic Bank’s flexible financing solutions—working capital loans, trade finance, and LPO financing—ease this challenge and empower businesses to invest in expanding their capacity.
Expanding Market Access: Africa-China Partnership
For the manufacturing sector to thrive, access to markets is critical. Stanbic Bank is committed to helping businesses expand their reach both locally and internationally through our Africa-China Partnership. This collaboration opens new markets for local manufacturers, secures affordable raw materials, and integrates them into global supply chains.
Simplifying Supply Chain Complexities
Supply chain challenges also impact the sector’s performance, but Stanbic Bank offers tailored trade finance solutions to ease these complexities. Through Letters of Credit and Bank Guarantees, we help businesses import raw materials and ensure a seamless flow of goods across distribution channels.
Supporting Innovation and Sustainability
SMEs, the backbone of Kenya’s manufacturing sector, require more than just financial support. They need guidance on scaling operations, technology adoption, and sustainability practices. Stanbic Bank’s SME proposition includes financial and advisory services aimed at helping businesses innovate and adopt green manufacturing and clean energy technologies.
Our digital banking tools allow SMEs to manage their finances more efficiently, while our online platforms provide convenient access to banking services that enable businesses to thrive in today’s digital economy.
Policy Recommendations: Enabling Growth
For Kenya to realize its vision of becoming a manufacturing hub, regulatory processes need to be streamlined. At Stanbic Bank, we support the government’s ongoing efforts to invest in geothermal energy and provide preferential electricity tariffs for manufacturers within Special Economic Zones (SEZs). These initiatives will reduce operational costs and ensure manufacturers have reliable access to energy.
The festival is scheduled to take place from November 5th to 9th, 2024 and will be hosted at the Kenyatta International Convention Centre (KICC) concurrently with the Kenya Industrialization Conference as part of the Africa Industrialization Week.
With over 200 exhibitors, including over 100 manufacturing Small and Medium Enterprises (SMEs), this year’s festival promises to showcase the best of locally manufactured goods, aligning with the Buy Kenya Build Kenya Strategy.