INDUSTRIALIZATION

Abstract

Africa at independence in the 1960s and 1970s was a fragmented continent with enclave economies (many small states) geared towards export of mainly primary commodities; this was to stir a desire for rapid industrialization through manufacturing. Industrialization was perceived as the vehicle towards attaining high income elasticity.1 The study sought to interrogate the influence of export-led strategy in Kenya’s industrial development. Specifically, the study intended: To determine how value addition has contributed to Kenya’s Industrial development to evaluate export incentive schemes and their contribution to Kenya’s industrial development; to explore institutional export support networks and their contribution to Kenya’s industrial development. The study was guided by the following hypotheses: General hypothesis: Export-led strategy has positively influenced Kenya’s industrial development. Specifically; There is a positive relationship between enhancement of competitiveness of products through value addition by manufacturing industries and Kenya’s industrial development. There is a positive relationship between government initiation of export schemes and increased Kenya’s industrial input. There is a positive relationship between strengthening of export support networks by the government and increased the share of industry in economic development. This study was carried out through contacts with government officials, industrial estate owners and workers. Both primary data and secondary data were collected. A purposive sampling technique was used to sample respondents from institutions while a simple random sampling technique was used to sample respondents from industrial firms. Modernization theory formed the philosophical foundation for understanding the influence of export-led strategy in Kenya’s industrial development. The study found out that despite the fact that the government of Kenya has introduced incentive schemes to promote export-led industrialization, most of these schemes are not being effectively utilized by industrial firms, thus their role in Kenya’s industrialization has been subtle. The study also found out that most industrial firms are involved in low value added products which involves basic or rudimentary technology. The resultant effect is that products fetch low returns in the international market thus stifling industrial progress. The study recommends effective implementation of these policies.