Manufacturing remains critically important to both the developing and the advanced world, In many countries the sector is in a state of transition: growing in emerging economies; shrinking but becoming more productive in advanced economies. Some markets compete on cost, others on technology and innovation. Manufacturing in Kenya contributes about14.8% of the GDP; the industry has experienced only a slight growth since the country’s independence. In the post-independence era the manufacturing industry grew fast, but it started facing stagnation as from the 1980s. High energy costs, power shortages, and the influx of cheap imports are some of the factors that led to the stagnation of the industry. Most of the country’s industries are located in the major cities of Nairobi, Kisumu, and Mombasa. Most of the industries are focused on the food sector, and they include beer production, grain milling industries, sugar industries. There are also several car assembly industries like CMC motors Kenya, General Motors, and an oil refinery which refines imported crude oil to petroleum products which are meant for domestic consumption. There is also a cement industry that focuses on producing cement or construction. Some of the companies in the cement industry include Mombasa cement, Bamburi cement, Savannah cement, Athi River mining limited, and the East African Portland Cement Company. Lastly, there is a fast-growing informal sector in the country where individuals manufacture household goods in small scale for the local market.
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