Adjustment, Technological Capabilities and Enterprise Dynamics in Kenya

In the mid 1960s Kenya launched an import-substituting industrialization strategy, with high levels of protection for manufacturing and a large role for the public sector in industry. By the 1980s it had achieved a high level of industrialization by SubSaharan African standards — the share of manufacturing in GDP averaged 12.3 per cent in 1975–80 compared with about 10.0 per cent for the region as a whole. However, after an initial spurt, manufacturing growth began to slow down, from 11.6 per cent per year in 1970–75 to 4.9 per cent in 1975–80; the share of manufactured products in total exports stagnated at 16.0 per cent during 1975–80.