EDITORIAL: Creating additional jobs locally is the way to go

AUTO SPRINGS EAST AFRICA CEO SALIL PATEL (LEFT) AND INDUSTRIALIZATION CABINET SECRETARY ADAN MOHAMED DURING THE OPENING OF THE FACTORY IN LIMURU KIAMBU COUNTY ON MAY 8, 2018. PHOTO | SALATON NJAU | NMG 

Summary

• Kisumu, Eldoret, Ruiru, Sagana, Juja and Thika once hosted industries that supported farmers growing thousands of acres of sisal and cotton.
• Today, that is history with poverty having replaced decent levels of incomes for industrial workers.
• Unfortunately, the replacement has been second-hand and environmentally detrimental imports.

In many countries that have managed to industrialise, especially in Asia, governments have been resolute in offering incentives to local producers.

For instance, on the streets of Seoul in South Korea, you will hardly see a foreign car. That is because like Japan, it prioritised manufacturing as a key driver of the economy. Similarly, China has hugely invested in infrastructure to swiftly emerge as a top global industrial nation.

As in the case of South Korea and neighbour Japan, there was no policy contradiction with the action of the government when it came to developing industries.

That is why these countries find themselves in the economic situation they are and Kenya in the pitiable status it is grappling with.

From killing textile and sisal industries in the 1980s through criminally inspired imports to letting in aged cars, we have done a lot to destroy our industries.

One might sneer at such analyses as wishful thinking of protectionists. But economies such as South Africa, which does not allow importation of used cars, have shown that some level of protectionism is required for industrial development.  

Kisumu, Eldoret, Ruiru, Sagana, Juja and Thika once hosted industries that supported farmers growing thousands of acres of sisal and cotton. Today, that is history with poverty having replaced decent levels of incomes for industrial workers. Unfortunately, the replacement has been second-hand and environmentally detrimental imports. As matter of fact, countries like the US have managed to arm-twist us into allowing mitumba imports at the pain of losing African Growth and Opportunity Act duty-free status — going to show that we need not have qualms while defending our interests.

Wednesday, we reported that a manufacturing firm, Auto Springs East Africa, was set to create an additional 600 jobs at its Limuru factory if the government implements policy on local motor vehicle content. The firm, already employing 230 people, says Legal Notice 489 on 40 per cent domestic should be implemented to actualise the job creation. Ironically, a vibrant spare parts industry was scuttled by the used vehicle imports in the 1990s.

We fully support resolute implementation of the law as well as local content preference that the procurement authority and the courts are treating as a suggestion. We cannot keep exporting jobs through our own negligence and expect to thrive. As Uhuru Kenyatta drives his Big 4 agenda, he has to seriously look at economic leakages arising from not supporting local companies.