THE ROLE OF RESEARCH AND DEVELOPMENT IN THE INDUSTRIALIZATION PROCESS IN KENYA

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THE ROLE OF RESEARCH AND DEVELOPMENT IN THE INDUSTRIALIZATION PROCESS IN KENYA Moturi C. what's more, Ogada T. Kenya Industrial Research and Development Institute (KIRDI) Technical workshop on Industrialization 22 nd November 2006, KICC, Nairobi

CONTENTS Background

Background The Kenyan economy has delighted in both times of incredible advances and crippling downturns. Rates of destitution and unemployment, pitiful outside trade profit (fares of essential item basically - agro-deliver) have brought about troublesome adjust of installment and low per capita pay It is evaluated that > 60% of Kenya's populace live underneath the neediness line

contd While, the general populace development rate has encountered a decay in the course of the most recent 2-decades, unemployment keeps on expanding therefore, absence of gainful business openings has prompted to a fall of genuine wages in almost every one of the segments of the economy As well, the populace weight on agrarian land and the related decrease in individual possessions have brought about low and diminishing efficiency

contd It has been recognized that to adapt to these difficulties, the economy should reliably develop at between 8-10% yearly. In this way, through quick managed financial development, national riches can be made, prompting to expanded business and wages and reasonable ventures These thus will give the assets to bolster measures to ease neediness, secure powerless gatherings and give rising ways of life to Kenyans

contd It is very much perceived that industrialization is a methods through which Kenya can quicken its monetary development Indeed, all pointers demonstrate that Kenya's objective of fast and supported development can't be accomplished without industrialization, as has additionally been shown in all NICs

Indicators of Industrialization and Industrial Competitiveness Manufacturing Value including per capita (MVA) measures the level of industrialization of a nation Manufactured fares for each capita is a measure of the capacity of a nation to deliver products aggressively

MVA as % GDP

Industrial Development Policies in Kenya Since autonomy (1963), it has been perceived that the casual area has potential in work and riches creation in Kenya The GoK has along these lines kept on responding decidedly by encouraging MSEs to produce practical business and salary by detailing different strategies to address imperatives influencing the part The accompanying is therefore, a rundown of the key government arrangement papers that have been produced throughout the years

contd Sessional Paper No 10, 1965 The Sessional paper on "African Socialism and its Application to Planning in Kenya" set the pace in the presentation of little undertakings in the economy. The paper looked to indigenise the economy by urging remote undertakings to furnish Kenyan Africans with fundamental aptitudes through preparing, apprenticeship projects, to empower them work private business

contd Sessional Paper No 10, 1973 The longing to Kenyanize the economy was further increased by the Sessional paper on Employment. It endeavored to help little ventures to get to working destinations, credit, administrative and specialized administrations, ability redesigning and business preparing administrations

contd Sessional Paper No 5. of 1982 The Sessional paper on "Science and Technology for Development" Recognized that Science and Technology give the learning which to distinguish openings and to build development rates (by making capital and work more profitable). The Paper prescribes that the GOK ought to intentionally, yet reliably grow its examination framework to cover all divisions of the economy

contd It likewise suggests: Increased levels of financing to 1% of GDP for Research and Experimental Development. Obtaining and Transfer of Technology Policy Capacity Building for Technological change

contd Sessional Paper No 2, 1985 on Unemployment The paper valued the significance of MSE division in the economy and looked to urge it to extend. It however missed the mark concerning giving solid answers for the division's openness to credit, specialized and promoting help

contd Sessional Paper No 1, 1986 The paper on Economic Management for reestablished Growth together with the Sixth National Development Plan (1989-1993) attempted to quicken MSE development by looking to correct the tenets and directions that repress MSEs To restrict uncalled for exchange rehearses by vast scale firms To change cost-value relations for MSEs To address limitations that breaking point access of MSEs to back and credit.

contd Sessional Paper No 2 of 1992 The Policy paper on "Little Enterprise and Jua Kali Development in Kenya" was discharged to address comparable issues influencing MSEs However, it underscored on the formation of an empowering legitimate and administrative situations that bolster the segment's graduation into formal segment

contd Sessional Paper No 2 of 1996 The Policy paper on "Modern Transformation to the Year 2020" is to be sure the premise of this introduction. The paper proposes measures to expel bottlenecks that prevent the potential MSEs in filling in as seed bed for industrialization It additionally proposes; to audit government acquisition directions and methodology to permit MSEs to give products and enterprises to Government The legitimization of permitting administration to make it less complex and less expensive

contd Perhaps more significantly, the paper perceives that with the goal for Kenya to accomplish and keep up intensity in the worldwide market, innovation , among others, will assume a noteworthy part It likewise supports; Private division to put resources into innovation improvement (freely or in a joint effort with open R&D foundations)

contd Economic Recovery Strategy for Wealth and Employment Creation (2003-2007) The arrival of the outline got to be distinctly important to address the twin test of; Creating Employment Creating Wealth Reducing Poverty It underlined on the yearning to encourage MSEs to graduate in business estimate. This was further reinforced by the arrival of Sessional Paper No.2, 2005, on Development of Micro and Small Enterprises for Wealth and Employment Creation for Poverty Reduction, which tried to upgrade the limit of MSEs to produce riches and in addition sturdy and better than average occupations

contd The outline likewise suggests "Improved support for R&D for ventures by evaluating the assessment motivations for doing examination and zero rating research-related hardware" , among others

Vision 2030 The Vision visualizes an all inclusive focused and prosperous country with high caliber of life by 2030 Per capita wage positioning among the five most elevated in Africa Eliminating total neediness and building an evenhanded and just society Becoming Africa's most aggressive economy 10 % development in GDP for the following 25 years

The Missing Gap It can be obviously noted, from the above survey, that the proposed mediations have not really yielded the normal outcomes This is apparent in the way in which new strategies keep on being figured to address pretty much similar issues that past arrangements were intended to handle. It is additionally clear that the hole amongst MSEs and Medium endeavors on one hand and that amongst Medium and Large ventures recommend that few of the MSEs graduate to the Medium level

Large (21%) Medium (14%) An A MSEs (65%) Schematic Diagram outlining the Missing Gap in the MSE Growth (Ref: Based on Data from GoK Statistical Abstracts)

contd While MSEs produce business and riches, the lion's share can't develop vertically, in this manner bringing about the hole amongst MSEs and the Large undertakings, i.e. the missing center/crevice It is presently very much recognized that without vertical development it would be troublesome for MSEs to create feasible business and fill in as seedbed for industrialization.

contd 3 Major limitations keep on hindering the vertical development of the MSE area, i.e.; Lack of Credit Low level of Education Negative "Jua Kali" Attitude Lack of Market Information Lack of Technology Advancement As all around, constrained work locales and absence of clear vision likewise add to the moderate development of the part

Technology Acquisition There are 4-wide method for getting innovation, i.e.; Indigenous R&D Direct remote speculation Purchasing or renting "off-the-rack", and Overseas preparing and study visits Accessing patent archives in the general population space

Universities R&D Institutions R&D Teaching Extension Capacity Building New learning Knowledge Transfer Technological improvement Mandate of Universities and R&D Institutions

e.g. KIRDI Mandate The command of KIRDI at origin – in 1942, was to start and create nearby enterprises to soothe the modern merchandise deficiencies occasioned by the second world war Derived from the S&T Act, 1979, Cap 250; To do Research and Development in Industrial and Allied Technologies, including: Civil building , Mechanical designing , Textile innovation , Electrical building , Mining , Power assets, Chemical building, Industrial science, Food innovation, Ceramics and innovation, Environment, Information innovation

OPERATIONAL ENVIRONMENT The GOK received an Industrialization system for accomplishing: reasonable monetary development, fast business era and neediness destruction, thro' focused generation and utilization It is in any case, very much perceived that throughout the previous 10 years or something like that, the Industrial sub-area in Kenya has been on the decrease, and that,

contd the nation is confronted with