The Kenyan manufacturing sector has issued a desperate distress signal, identifying exorbitant power tariffs and a hostile tax regime as the twin assassins of industrial growth in their 2026 agenda.

Energy costs in Kenya have long been the elephant in the room. While the government touts its green energy credentials, the cost per kilowatt-hour for heavy industry remains prohibitively high compared to regional competitors like Egypt and Ethiopia. The Kenya Association of Manufacturers (KAM) 2026 agenda makes it clear: without a drastic reduction in power costs, "industrialization" will remain a hollow slogan.

The Competitiveness Crisis

The math is brutal. High energy costs bleed directly into the final price of goods, making Kenyan products uncompetitive on the shelf. When you add a volatile tax structure that shifts with the political wind, you create an environment where survival, not expansion, becomes the primary goal.

• The Tax Cut Plea: Beyond energy, manufacturers are calling for targeted tax cuts on raw materials and machinery. They argue that taxing inputs is akin to taxing the seed before it's even planted.
• The Regional Reality: With the borders opening up under the AfCFTA, Kenyan factories are no longer competing just with each other; they are competing with efficient, low-cost producers from across the continent.

A Call for Action

The ball is in the Energy Ministry's court. The rhetoric of "lowering the cost of doing business" must now be matched by the reality of lower utility bills. KAM’s message is a final warning: Cut the costs, or watch the factories close.

We are at a tipping point. The decisions made in 2026 regarding power tariffs will determine whether Kenya remains an industrial hub or becomes a warehouse for imported goods.