Local manufacturing key to unlocking value from China trade
Afripeak Expo Managing Director Gao Wei said Chinese companies should look beyond supplying the Kenyan market and consider establishing production and assembly operations locally.
Nairobi, Kenya - For Kenya to fully benefit economically from its growing trade relationship with China, business leaders argue that the country must pivot from importing finished goods to fostering local manufacturing, assembly, and technology transfer. This shift, they contend, would enable Kenya to attract investment, generate employment, enhance industrial skills, and solidify its manufacturing sector while establishing itself as a production hub for the broader East African market.
Gao Wei, the Managing Director of Afripeak Expo, emphasized the importance of establishing production and assembly operations within Kenya rather than merely supplying the local market. He stressed that building partnerships, transferring technology, assembling goods locally, training technicians, and creating jobs constitute genuine cooperation. According to Gao, these actions represent long-lasting collaborations, contrasting with the fleeting nature of mere trade transactions.
During the opening of the ninth Kenya International Industrial Expo and Kenya Investment & Trade Fair 2026 at the Sarit Expo Centre in Nairobi, Gao addressed the significance of shifting Kenya's trade dynamics. The three-day expo, running until September 5, has gathered Kenyan and international manufacturers, suppliers, investors, and traders, including a business delegation from China’s Guangdong Province.
Guangdong, a major manufacturing and trading center in China, is anticipated to offer Kenyan businesses insights into industrial equipment, technologies, and potential investment partners.
Joseph Mutavi Kithu, the National Director of the Kenya National Chamber of Commerce and Industry (KNCCI), highlighted the critical role of strengthening local production and technology adoption in Kenya’s economic transformation. He stressed that Kenya’s economic growth hinges on investing in productive sectors, bolstering local manufacturing, embracing technology and innovation, and broadening opportunities for businesses in both domestic and international markets.
Kithu pointed out that industrialization encompasses more than just large factories; it involves the vast network of small and medium-sized enterprises (MSMEs), suppliers, distributors, technology providers, and service businesses that underpin Kenya’s economy.
Kenya has been actively expanding manufacturing and seeking investment in productive sectors. However, the challenge lies in transforming trade relationships into productive investments and ensuring Kenyan enterprises assume higher roles in the value chain. The expo, featuring businesses in manufacturing, construction, logistics, electric mobility, packaging, engineering, agro-processing, equipment supply, and insurance, aims to facilitate business-to-business meetings to connect Kenyan firms with international suppliers and potential investors.
The organizers underscore that the true measure of the event's success will be whether the engagements lead to investments, technology transfer, local production, and new business opportunities rather than merely the sale of imported products.
Written by urgent.news from Capital Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
