Manufacturing plays a vital role in Kenya’s economic development. It transforms raw materials into finished products, contributing to national output, job creation, export earnings, and industrial growth. As a pillar of economic transformation, it accounts for 14% of Kenya’s GDP and continues to expand across major urban centers like Nairobi, Mombasa, and Kisumu. Both formal industries and the informal jua kali sector contribute significantly to this growth. Family-owned manufacturing businesses are at the heart of this progress. For example, Mabati Rolling Mills, founded by the Chandaria family, has grown into a global player through strategic planning and expansion. These businesses generate substantial tax revenues and employment opportunities, supporting both local and regional economies.
Sector Contribution to Population, Economy, and Families
Manufacturing provides income, employment, and access to essential goods, supporting Kenya’s growing population. It also stimulates other sectors, driving holistic economic development. For families, manufacturing businesses offer long-term wealth-building opportunities and legacy creation when supported by proper structures.
Challenges in Manufacturing Family Businesses
Despite the potential, many family-owned manufacturing firms struggle with succession planning, governance, and strategic management. Only 30% of family businesses survive into the second generation, and even fewer reach the third. Internal conflicts, lack of leadership transition plans, and resistance to professional governance often lead to failure.
IFFB (Institute for Family Business) partners with organizations like the Kenya Association of Manufacturers to help family-run manufacturing businesses implement strategic management, succession planning, and good governance practices. We offer tailored growth strategies to support long-term business sustainability and generational transition.
Don't hesitate to get in touch with us today to schedule a consultation and discover how we can support your journey.
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0722 111 104 / 0753 111 104
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