By Benadeta Mwaura - Reporter
Kenya, July 3, 2026 - Kenya is intensifying efforts to strengthen its manufacturing sector by encouraging Chinese companies to establish partnerships with local businesses, as the government seeks to boost domestic production, create jobs and reduce dependence on imported finished goods.
The initiative is being championed through the 3rd China (Linyi)-Kenya International Commodity Exhibition, currently underway at the Sarit Expo Centre in Nairobi.
The three-day exhibition has brought together more than 100 Kenyan exhibitors and over 90 Chinese manufacturers drawn from sectors including industrial machinery, construction materials, renewable energy, agriculture, automotive products and household goods.
The forum is expected to serve as a platform for investment discussions, technology transfer and the establishment of new manufacturing partnerships between Kenyan and Chinese firms.
The exhibition comes as Kenya continues to pursue its industrialisation agenda by attracting foreign direct investment into manufacturing, expanding value addition and strengthening local supply chains.
Government officials and industry stakeholders believe increased collaboration with Chinese manufacturers could help establish local assembly plants, reduce import costs and enhance the competitiveness of Kenyan industries.
Industry players say the event provides an opportunity for Kenyan manufacturers, distributors and investors to engage directly with Chinese producers on potential joint ventures, distributorship agreements and local assembly operations.
"The exhibition offers Kenyan manufacturers, distributors and investors an opportunity to engage directly with Chinese producers on potential joint ventures, distributorships and local assembly operations that could help expand domestic production while reducing reliance on imported finished products," organisers said.
The renewed investment drive builds on Kenya's broader strategy of positioning itself as a regional manufacturing hub under Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA).
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Authorities have increasingly prioritised local value addition, particularly in sectors such as agro-processing, pharmaceuticals, machinery, textiles and renewable energy technologies, where foreign investment is expected to accelerate industrial growth.
China remains one of Kenya's largest economic partners and a major source of foreign investment. According to government data, more than 350 Chinese companies operate in Kenya across sectors including manufacturing, infrastructure, electronics, agriculture and logistics, while bilateral trade between the two countries reached approximately US$4.7 billion in 2024.
The government hopes attracting more Chinese manufacturers to produce locally will not only create employment opportunities but also help narrow Kenya's trade deficit by increasing exports of value-added products.
Local production is also expected to reduce the country's reliance on imported finished goods while strengthening domestic supply chains and supporting the growth of small and medium-sized enterprises that supply industrial inputs.
Kenya's focus on manufacturing partnerships reflects a broader shift from infrastructure-led cooperation with China towards industrial investment and technology transfer.
If successful, the strategy could position Kenya as a regional production and export hub serving East and Central Africa while supporting the country's long-term ambition of increasing manufacturing's contribution to gross domestic product and creating sustainable industrial jobs.