Manufacturers in Kenya are urging the government to provide tax breaks and financial incentives to support the country’s transition to a green economy. The Kenya Association of Manufacturers (KAM) says these measures are crucial in offsetting the high costs associated with the shift to sustainable production practices.
Speaking at the 11th Clean Energy Expo and Conference held in Nairobi, KAM Chief Executive Officer Tobias Alando emphasized the need for policy consistency, public-private partnerships, and affordability to help the country achieve its goal of a 100 percent green transition by 2030.
“Investors need regulatory predictability. We also need incentives for local green manufacturing and targeted financing mechanisms like green credit guarantees and tax relief for clean production investments,” said Alando.
The call comes as manufacturers face increasing pressure to adopt sustainable technologies, with energy costs remaining a significant barrier. KAM leaders argue that affordable and reliable energy is critical for manufacturers to remain competitive while transitioning to cleaner operations.
“It is no longer enough to retrofit lighting or optimize boilers; we must power entire industrial parks with renewable energy, adopt circular economy solutions, and embed sustainability into the DNA of our manufacturing systems,” said Genesio Mugo, Chair of KAM’s Energy, Electrical, and Electronics Sector.
Mugo noted that achieving national goals—such as universal access to clean cooking by 2028 and 100 percent renewable electricity by 2030—requires practical interventions. He highlighted that 7.4 million small and medium-sized enterprises (SMEs), including women-led businesses, continue to grapple with high electricity tariffs, limited access to green financing, and inadequate technical support.
The manufacturers also reiterated their commitment to sustainability and called on the government to address the cost of power, which remains a major obstacle to green industrialization.
With Kenya positioning itself as a regional leader in climate action, the manufacturers’ proposals signal a crucial step toward aligning industrial development with the country’s environmental targets. Enhanced fiscal policies, such as tax incentives and subsidies, could play a pivotal role in unlocking private sector investment and accelerating the country’s green manufacturing agenda.
