Manufacturers Push for Policy Reforms to Unleash Kenya’s Steel Sector
PHOTO: Mr. Bobby Johnson – Chair, Metal and Allied Sector, KAM
NAIROBI, Kenya, July 7 – Steel manufacturers have called for measures to lower the cost of production, curb the entry of substandard products and create a predictable business environment to enable Kenya’s steel industry to increase production and compete in regional and international markets during the East African Steel Summit.
The two-day Summit, convened by Kenya Association of Manufacturers (KAM) in partnership with Steel Giant at Sarit Centre, Nairobi brought together over 400 delegates and exhibitors, including steel manufacturers, processors, traders, policymakers, equipment and technology providers, financiers and other players in the steel value chain.
It served as a platform for industry players to discuss the future of steel production, trade, technology, investment and sustainability in East Africa.
Kenya Association of Manufacturers (KAM) Chief Executive Officer Tobias Alando while speaking during the summit highlighted the sector’s growth trajectory over the years.
Mr. Alando noted that Kenya’s steel industry has grown from the manufacture of nails in 1948 into a diversified industry covering hot and cold rolling, wire products, tubes and pipes, fabrication and aluminium products.
The industry accounts for about 13% of Kenya’s manufacturing sector and contributes approximately Ksh 34 billion in taxes annually. However, much of the country’s steel production capacity remains unused.
“The sector has an installed capacity of 4.2 million tonnes but currently operates at only 36% of that capacity. In 2025, Kenya imported about 1.66 million tonnes of iron and steel products while exporting approximately 197,000 tonnes”, He said.
“This low-capacity utilization to the high cost of raw materials and production, declining exports of finished steel products, cheap imports and unpredictable tax policies,” highlighted Mr. Alando.
He further noted that increasing local steel production would enable the country to meet growing demand.
“Despite the capacity we have built over the years, Kenya continues to import substantial volumes of steel products. This presents an opportunity to expand local production, deepen value addition, strengthen local supply chains and reduce our dependence on imports”.
“A strong steel industry is central to our industrialization because it supports construction, transport, energy and other industries that drive economic growth,” said Mr. Alan.
As Kenya continues to invest in affordable housing, roads, railways, ports, industrial parks and energy projects, demand for steel is expected to significantly grow.
Manufacturers also have access to wider markets through the African Continental Free Trade Area (AfCFTA), COMESA and the Kenya-EU Economic Partnership Agreement.
Mr. Alando, however, noted that manufacturers will only take advantage of these opportunities if the country addresses the cost and competitiveness challenges facing the industry, saying, “High energy costs, substandard and illicit products, regulatory unpredictability, limited access to affordable financing and increasing pressure from low-cost imports continue to constrain the growth of our industry”.
Additionally, He noted that addressing the challenges requires Government, industry, financial institutions and development partners to work together to create an environment that supports investment and local production.
Industry leaders further warned that without immediate intervention to stabilize the local market, domestic producers will continue to struggle to compete against cheaper alternatives in regional and international trade.
KAM Metal & Allied Sector Chairman Bobby Johnson said the growth of the steel industry is closely tied to East Africa’s infrastructure and industrial development.
“Every home, every kilometre of road and rail, every hospital and school being built today depends on the work of this industry. As investment in affordable housing, transport, energy and other infrastructure grows, our manufacturers are ready to meet this demand and realize the full potential of the steel sector,” said Mr. Johnson.
He also called for stronger enforcement of standards and greater cooperation among East African Community Partner States to address substandard steel products entering the market.
“The people who live in the homes we build, use our roads and work in our buildings trust that the steel used in those structures meets the required standards”, added Mr. Johnson.
“We must protect that trust. Harmonized standards that are fairly and consistently enforced across the East African Community will protect consumers, support manufacturers that comply with the law and strengthen the regional steel industry”.
