Kenya Association of Manufacturers


Top Executives attend launch of Anti-Corruption Compliance Guide Book

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Top Executives attend launch of Anti-Corruption Compliance Guide Book

August 28, 2014, Nairobi: Top Executives yesterday participated in the launch of an Anti-corruption compliance guide book for mid-size companies in emerging markets, an industry captain has said. The practical guidebook seeks to help directors, executives, legal counsels, and managers to design and maintain effective compliance programs in their organizations. “Businesses need to stand their ground in the fight against corruption and not bend down to extortion,” said KAM Chairman, Mr. Pradeep Paunrana. Adding that those encouraging bribes should be exposed.Mr Paunrana added that corruption has become a menace to the growth of the economy. 

“Corruption is now recognized as one of the greatest challenges that is stifling the success of the Kenyan economy. Its impact is widespread, often creating serious inefficiencies and denies the national fiscus of much needed resources for national development,” he said.

He added that the business environment demands greater corporate accountability and transparency. “With the development of stringent anti-corruption laws and increased corporate governance rules around the world, the business community must now arm itself by putting in place and enhancing anti-corruption measures and practices as part of their corporate sustainability strategy,” said Mr Paunrana.

The guide developed by Centre for International Private Enterprise (CIPE) was launched at an event co-hosted by Kenya Association of Manufacturers (KAM) and the Global Compact Network Kenya (GCNK) for industry captains. “With the launch of this guide I hope policies will be formulated within our companies that will help fight this menace,” added Mr. Paunrana. 

While there is a broad global consensus that corruption suppresses fair competition and innovation, countering it presents a challenging task. Anti-corruption rules and regulations may be weak or unevenly enforced and government-led steps to fight corruption remain insufficient. Businesses in Kenya committed to anti-corruption stand to gain from better compliance as a key selling point. 

Additionally, companies with internal codes of conduct and those subscribing to voluntary initiatives such as the Code of Ethics for Business in Kenya and UN Global Compact Principles are encouraged to continuously improve their own safeguards against corruption and turn compliance into a competitive advantage. The Center for International Private Enterprise (CIPE), an affiliate of the U.S. Chamber of Commerce, has worked with such businesses through its partner chambers and associations around the world, including KAM.

“This is one of CIPE’s newest publication meant to help local companies around the world think about anti-corruption compliance as a strategic investment and take concrete steps to introduce or strengthen their internal compliance programs,” said Ms Anna Nadgrodkiewicz, Director, Multiregional Program,CIPE.

According to the guide compliance is a broad concept that in the context of business refers to more than just fulfilling various national and international laws, regulations, rules, and standards in a number of key areas that include: anti-corruption, financial regulation, human rights, workplace safety, environment and labour. It goes further to touch on a company’s ethical culture – a set of shared attitudes, values, goals and practices that encourage ethical behavior in pursuit of a company’s goal.

“The most effective culture is not one rooted exclusively in prohibition and punishment, rather it is one where leaders and employees at all levels respect the limits of authority and behavior even when no one is watching,” said Lars Benson, Senior Program Officer, CIPE. Anti-Corruption compliance is important for mid-sized businesses as companies that think strategically appreciate the need to strive for integrity as a matter of risk management and sustainable business practice. According to the World Bank, corruption adds up to 10 per cent of the total cost of doing business globally, and up to 25 percent to the cost of procurement contracts in developing countries.

Mid-sized companies in emerging markets report that the implementation of anti-corruption compliance programs brings benefits not always directly related to reducing the risk of prosecution. Firms with anti-corruption policies in place enjoy easier access to credit and a better image in the eyes of potential partners. Anti-corruption measures also result in better overall management because firms do not tolerate double standards, opaque business decisions and risky behaviour by employees. In a competitive emerging market where multinationals have a wide choice of potential business partners, those mid-sized firms with anti-corruption commitments immediately stand out from the competition.

“By fighting corruption, companies of all sizes can be good corporate citizens and make a difference in their countries’ democratic and economic development prospects,” added Mr. Benson.



CIPE strengthens democracy around the globe through private enterprise and market-oriented reform. CIPE is one of the four institutes of the National Endowment for Democracy and an affiliate of the U.S. Chamber of Commerce. Since 1983, CIPE has worked with business leaders, policymakers and journalists to build the civic institutions vital to a democratic society. 

CIPE’s key program areas include anti-corruption, advocacy, business associations, corporate governance, democratic governance, access to information, the informal sector and property rights and women and youth.


KAM represents 800 members in the manufacturing industry and the manufacturers arguably contribute about a quarter of the country’s gross domestic product. Over a million people are employed in the sector and millions others are supported in downstream activities. The manufacturing sector is the country’s backbone and if this sector is not well supported the country stands to lose a lot of revenue and millions of jobs may also be at stake.

ABOUT Global Compact Network Kenya

The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. The Kenya network currently with 94 members is the local focal point working to support companies to integrate the ten principles within core business.

For more information please contact:

Paida Nyamakanga, Head of Corporate Communication. Kenya Association of Manufacturers on 0717112767 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Manufacturing Barometer | Quarter 3

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The KAM Manufacturing Barometer is a quarterly publication used to measure the pulse of the Kenyan industrial sector using a number of indices. The inaugural issue was launched in 2013 and this edition is the first that provides comparative data to that issue.

Information is gathered from members of the Kenya Association of Manufacturers. The barometer is a useful predictive tool for gathering information on what is the current situation and what is likely to happen in the manufacturing sector in the next 3 months. 

Overall, most indicators improved in comparison to the last quarter. 10 out of 17 indicators did well. Optimisim in the industry improved and the indices on orders also improved despite a dismal outlook by manufacturers for the next 3 months which decreased slightly by 2 points. Indices on Average prices have been falling except for the last 3 months where it improved by 10 points. Still manufacturers are hesitant to show confidence in increasing prices in the next three months. In terms of profit and stock levels during the last 3 months, there was a decrease while employment seemed to have improved including the volume of output. Manufacturers are hopeful that things will improve slightly in the next quarter.

Download a copy of the Quarter 3 Manufacturing Barometer

Mombasa Business coalition meets County Executive to discuss Cess/Entry Fee

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Mombasa Business coalition meets County Executive to discuss Cess/Entry Fee

The business community sought yesterday  (8 Aug) met with County Government of Mombasa to discuss the recent revocation of the waiver on Entry fee by the county of Mombasa. The team from county Government was made up of the CE for Trade, Energy and Industrialization, Mr. Mohamed Abdi and his counterpart County Secretary Hamisi Mwaguya. The meeting was attended by members from Krystal line Salt, Coca cola, Milly Glass, Polucon Services, Mombasa Maize millers, Bamburi Cement, KNCCI representative and  KATO representatives. 

Member’s present raised concerns about the County charging a cess fee for goods.  Cess taxes are usually charged for agricultural products and this is normally done at the source. A case scenario was given of Bamburi cement that pays Cess for clinker at Kilifi and when it reaches Mombasa they are still required to pay the cost. This results in double taxation. The question of the legality of the entry fee has been disputed since last year, when it first appeared in the Finance Act 2013. In the past, this entry fee was meant for Kongowea market in the now defunct Local Authority, but the County Government included them in the bill and thus creating trade barriers at Shanzu and Miritini.

Mohamed Abdi mentioned that the waiver was revoked because it did not follow the proper procedure for giving of waiver; however he mentioned that the manner in which it was revoked through a newspaper advert before consulting with the Business Community was not proper. 

Speaking at meeting the Coast Chapter Chairman, Mr. Munir Thabit said that most businesses operate on orders that they receive to manufacture and such a directive puts businesses in a lot of anxiety. He proposed a nullification of the tax and the establishment of a working committee constituted of County and Private sector members to come up with proposals on how levies are to be charged. 

Mr. Abdi promised to consult with the Finance Executive of the county and agreed that having a working committee comprising of private sector and County will be a better way going forward. Local Business Membership Organisations were tasked with identifying  five people from each business association to form part of the working committee.

Mr. Abdi also said the county is in the process of coming up with the Finance Bill 2014 and that the working committee which will be established will be part of the team working on the new bill. 

Mombasa County Priority Business Agenda launched

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Mombasa County Priority Business Agenda launched 

The Mombasa Business Coalition made up of Kenya Association of Manufacturers, Kenya Transport Association, The Kenya National Chamber of Commerce & Industry, Mombasa County Community Based Association, Kenya Association of Tour Operators, Mombasa and Coast Tourist Association (Kenya Coast Tourist Association), East Africa Tea Trade Association, Kenya Association of Hotel Keepers and Caterers, Container Freight Station Association, KIFWA, Ujamaa and PERAK, today met with the various County Executive members to launch the Mombasa County Priority Business Agenda and to discuss various issues that affect business in the Mombasa County at Nyali Beach Hotel. The issues discussed included; Infrastructure, land,  Environment, Water, Health, Education, Security, Trade & business levies.

County government officials included  Mr. Mohamed Abdi, the County Executive for Trade and Industrialization. Ms. Millicent Odhiambo, the Mombasa and Coast Tourist Association Executive officer who said that the document should be like a Bible to be used as a reference point to ensure implementation of the recommendations by the Business community.

In order to foster a spirit of Public Private Dialogue, the County was asked to consult with business when a new directive or change is coming, for better business relations as well as harmony in the county. A scenario was given where a notice placed in the Star Newspaper dated back to 8/8/2014, revoked the waiver on CESS charges for manufacturers and transporters. This charge would have seen an increase in cost of doing business for manufacturers. 

Speaking during the handing over, the Mombasa Business Coalition Chair, Ms. Monika Solanki, reiterated that the publication needs to be kept alive by reviewing it constantly to see what has been achieved, what has not been achieved, come up with solutions and recommend way forward. She called for a timeline to track achievement of the pending issues. "We look forward to engage with the County to review the publication together once they have gone through it with their counterparts," she said 

Mr. Abdi said that the published document will  be a good reference point for them as the county government as they will use it to deliver to the business community who are the taxpayers. He however requested the Private sector to drive the process and continue engaging the county government. He also urged the Business communities to be the watchdog and ensure that clear timelines are set by the county Government to achieve all the mentioned issues while the media was asked to make the County Agenda their Number one priority and report on positive issues happening in the County and not just the negative ones. “This is a great milestone in the process of Public Private Dialogue being documented," he said. 

Concerns were also raised about the congestion at Kibarani and plans that the county has to create alternative exit and entry points that are not entirely dependent on the causeway. Mr. Abdi stated that the plans to explore alternatives such as water transport are at an advanced stage. Members requested him to enforce the rule to keep on the left at the causeway since trucks were no longer following the directive. He also spoke of plans to come up with a second 'Nyali Bridge' though this may take time since it’s a National project.  Mr. Abdi also mentioned the upcoming Finance Bill 2014 and urged members to participate fully by giving their proposals when they get invitation to attend the forum.    

Download a copy of the Mombasa Priority Agenda here. 

Local manufacturers seek ways to gain from the Standard Gauge Railway

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Local manufacturers seek ways to gain from the Standard Gauge Railway

August 5, 2014, NAIROBI:  

Private sector representatives yesterday (Aug. 4) asked Kenya Railways t to ensure that the 40% local content agreement is met by ensuring that a catalogue of all locally available content is presented to the company constructing the railway and negotiating for inclusion of more items and services.

The Standard Gauge Railway Consortium (SGRC) held a meeting on at the Railways headquarters to decide how the private sector can leverage on the 40% local content agreement that has been reached with the China Road and Bridge Corporation (CRBC) which will construct the Standard Gauge  Railway (SGR). Dr. Manu Chandaria, Chairman of Comcraft Group who chaired the meeting also called on sectors to work together since not all will be able, for example, to provide supplies throughout construction e.g. some companies might be able to provide support in Mombasa but not in Nairobi. Companies interested in tendering were also asked to do so using prices that are competitive internationally and not to look for protection using duty remission schemes. The private sector has advocated for the use of a PPP model to construct the railway line from Mombasa to Nairobi so that local content is used and local skills are developed.

The first phase will see the railway built from Mombasa to Nairobi starting this year. The project is expected to end in 2017. The second will extend that line from Nairobi to Malaba and Kisumu. Already Kenya is in talks with Uganda, Rwanda and Sudan to extend the lines for regional interconnectivity. This is due to concerns that most of the cargo traffic will be from Mombasa to Nairobi but not vice versa. Kenyan and other EAC exports need to go through rail to create down traffic to the port and justify the project.

CRBC is going to bring in about 5000 people to work here but it is expected to use a local workforce of about 30,000. While language issues are of some concern, local universities have been offering chinese language lessons and are expected to fill this skill gap. These skills are expected to come in handy in phase 2 of the project and in other subsequent phases. Kenyans will benefit the railway construction through skills transfer and by becoming a regional hub for all things railway. The government is looking into ways it can cut down the time needed to complete the project without cost escalation.

A 5-year EPC contract has already been signed by the government and CBRC has come up with a list of goods that they would like to source locally. Cement manufacturers and other local companies felt there was need to catalogue all that is available locally so as to engage CRBC to accept an extended list. Manufacturers also asked for a list of standards and quantities of what CRBC will source locally for planning purposes.



KAM represents 750 members in the manufacturing industry and the manufacturers arguably contribute about a quarter of the country’s gross domestic product. Over a million people are employed in the sector and millions others are supported in downstream activities. The manufacturing sector is the country’s backbone and if this sector is not well supported the country stands to lose a lot of revenue and millions of jobs may also be at stake.

For more information please contact:

Paida Nyamakanga, Head of  Corporate Communication. Kenya Association of Manufacturers on 0717112767 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

New KAM Board

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Meet the New KAM Board

Chairman: Pradeep Paunrana

Pradeep is the Chairman of Kenya Association of Manufacturers. He is also the Chief Executive of Athi River Mining, a large cement manufacturing company in Kenya. In 2010, Pradeep was awarded the Africa Business Leader of Innovation in Washington DC by the Africa Investor Group. Pradeep has been invited to share his experiences in building businesses in Africa at various international forums, industry conferences and business schools.

Pradeep plays an active role in several policy and advocacy institutions, and has chaired and participated in government task forces in the energy, environment and agriculture sectors. He is a Trustee of the Tree Biotechnology Program, Chairman Nairobi National Park Greenline Trust, and actively champions several charities, including the Company's Rhino Cement Foundation, which makes social investments in education, health and environment - an innovative program empowering company employees to manage corporate social responsibility.

He holds a MBA from New York University Stern School of Business. When not working, Pradeep enjoys birding, photography, cooking, family adventure holidays and golf.

Vice Chairlady: Flora Mutahi

Flora Mutahi is the founder and CEO of Melvin Marsh International Ltd with extensive local and international experience in strategic leadership, business development and market penetration and marketing. Proven ability to innovate, conceptualize and implement products and business solutions and to lead and mentor others to achieve company and personal goals.On a personal level Flora is married with three children. Flora holds an MBA from the University of Cape Town, BSc Finance and Accounts from the UK and is a Certified Public Accountant. She also serves on the Board for Seed Hope.

Athi River Chapter | July 2014

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KAM members on 22nd May 2014, together with the Machakos County Staff came together to make good the resolution to improve the environment within which they operate by planting trees. This initiative was informed by the agreement as members that we would look for alternative ways to engage with the County.  The trees were graciously donated by Athi River Mining (ARM) and East African Portland Cement EAPCC). A number of member companies joined in this initiative and together we managed to plant 1000 trees in the areas of Mlolongo, Athi River and Chumvi.

Many other members contributed in terms of merchandise and water for the participaints. In attendance, members represented included Heritage Foods, African cotton, Mabati Rolling Mills, East African Portlands Cement, Athi River Mining, Nation Group, Sanpac, Kapa Oil and London Distillres, to mention but a few.

During his speech, KAM Machakos Chair Gideon Aswani thanked members of the public as well as KAM members for participating in the exercise. He said that manufacturers had felt the need to help improve the environment within which they operate from since Mlolongo had grown in leaps since the inception of the KAM chapter as a neighbourhood association. He pointed out that the fact that the town had more buildings than trees called for immediate need for trees to be planted in order to green up the town. According to him, it was counterproductive for manufacturers to offer employment to a population that would suffer the effects of industrialization in a situation that could be helped by simply planting trees and nurturing the environment. He asked members to own such initiatives as they and their communities as well as children would be the man beneficiaries in the future. Mr Aswani thanked the Machakos Government for working with KAM and reiterated the need to further work together to ensure thatthe residents enjoyed the fruits of government working with corporate. Finally, the thanked the Machakos government for beautifying the highway. In closing, he urged everyone to plant a tree.

The Director of Image, Machakos county, Ms Diana Tarichia thanked KAM for the noble gesture as well as for the initiative. She said that it was through such initiatives that the government would be able to deliver its mandate to the people.

A spot check two weeks ago revealed that many of the tree survived are are watered by the County government. Members resolved to continue doing such work for the community.



Uasin Gishu County | July 2014

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>>County Government Focuses on Infrastructure Improvement

>>Traffic Congestion along Nairobi-Malaba Highway at the Eldoret CBD

County Government Focuses on Infrastructure Improvement

The County Government of Uasin Gishu has recently focused on developing and improving infrastructure within the County. On roads, over 900km of roads have been graded and murraming is being done. The roads in focus include; improvement of link roads that join the main highway. Completion of the Kapsoya road will also ease traffic congestion along the highway and the CBD. There has also been on-going improvement of street lighting and drainage works in Eldoret town alongside tendered for tarmacking of major streets in Eldoret town (64 St, Muliro and Gen. Kago). Furthermore the County Government has embarked on development of walkways for pedestrians along Iten Road and Uganda Road.

Apart from this, development of a new fire station has been tendered at Maili Nne to enhance rapid response by fire and the disaster management team within the region. The County has also focused on increased capacity in roads and survey divisions for efficient delivery of service.

Traffic Congestion on the rise within Eldoret Town

The Nairobi-Malaba Highway passes through the heart of the Central Business District of Uasin Gishu County. Traffic Congestion along Nairobi-Malaba Highway at the Eldoret CBD. Due to the reduced use of the railway line to Uganda, there has been an unprecedented upsurge in the volume of road traffic, particularly heavy haulage trucks passing through the town. The road network itself is an inheritance from the colonial period, coming with a narrow gauge. It is evident that the size of road cannot sustain the volume of traffic passing through the town; let alone the resident traffic that has also grown over the last decade. This congestion’s is compounded by the fact that there is encroachment resulting from construction on road reserves. This further constricts the space for road expansion. Under the County Integrated Development Plan (2013-2017), there are plans for development of a by-pass to divert transit traffic away from Eldoret CBD. Several inlets and outlets to the CBD will also be constructed for ease of traffic flow within the town.

Nakuru Chapter | July 2014

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Nakuru Chapter 

Nakuru County in energy deal with GDC

Nakuru County Government and the Geothermal Development Company (GDC) have agreed to form a joint stakeholders committee that will look into all possible ways that energy generated by the firm can benefit the people of Nakuru.

This was after a daylong consultative meeting held 23rd July 2014 between the County Government, GDC and the Nakuru Business Community. 

Nakuru Governor Kinuthia Mbugua said the partnership will give great impetus to the development of Nakuru County and reiterated that the County stands to be immensely transformed into a major investment destination with enough potential to attract much needed investments from local businesses and from abroad.

“As a County we need to be proud of this resource that GDC has presented to us because of its uniqueness and ability to turn around this County in unimaginable ways,” said Governor Mbugua.

KAM Nakuru Chapter Chairman Rajen Shah will head the committee which will include at least three members from various groups, including the GDC, Nakuru County Executive, the county Assembly, and the Nakuru Business Community. 

Some of the issues to be addressed by the committee include:

Investments in the energy sector

Employment – directly and indirectly

Business opportunities creation

Tenders and local supplies

Development of industrial park

Exploitation of water resources from GDC

Governor Mbugua added that his government fully recognizes the role GDC will play in the County and assured stakeholders of full co-operation from all the relevant arms of the government.

“We as leaders recognize the efforts placed in achieving this feat and the progress made. There is a lot of potential for investments and we look forward to partnering with you in making this a reality,” he said.

Governor Mbugua was accompanied by the CEC in charge of Energy and Natural Resources Richard Rop and other County Executives and officers alongside Members of the County Assembly.

Governor Mbugua addressing stakeholders during the consultative meeting at Merica Hotel

GDC boss Dr. Silas Simiyu highlighted the key areas that the County stands to benefit including grain silos - drying of grains and cereals and other farm products including pyrethrum, green houses, chemical & medicinal plants processing such as Aloe Vera, dairy industry cooling plants, pasteurization and Recreation – hot bath/swimming pool, treatment of hides and skins, honey processing, cooking oils production among others.

He challenged the County leadership to invest in power generation to provide cheaper power for investors in Nakuru saying that was not the preserve of the National Government.

“Both the National and County Governments are mandated to generate and distribute power. It is up to the County Government to come up with legislation and bankable projects to generate power for own use and in this way provide cheaper power locally for investors,” said Dr. Simiyu.

He further indicated that once the Menengai Geothermal project is fully operational a lot of clean water will be available for potential investors to take advantage of. “We generate 8 tonnes of water per hour per megawatt, so by the time we are doing 5000mw we shall be producing a lot of water which could be used for irrigation and other uses,” he said.

Asked about the viability of transmitting energy to industries in far flung areas, Dr. Simiyu said steam could be transmitted within an area of 10km radius and hot water within 70km radius.

“Now that plans to create Industrial Parks and Special Economic Zones are taking shape. We will be able to transmit as long as the industrial zones are in close proximity to our source,” he said.

GDC has successfully completed drilling 24 wells in Menengai with the current production capacity standing at 80 Mega Watts.

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