Kenya manufacturing shrinks and exports to region fall, contributing to job losses, raising more questions on #BBIReport

I had not realized quite how badly this was going, as reported in Standard story this weekend.

No wonder Kenyans On Twitter are energized against the performance of the Government in a seemingly broader and deeper way than in the past when the the economic malaise did not get as deep into the “middle class”.

The employment emergency described by the BBI Report is real, but the proposed solution is rapid industrialization for regional exports. There was already a credibility problem for the current Government as to what in the Building Bridges Initiative would make that type of rapid growth likely to happen. Now we see that the actual performance of the current system is not slow growth but rather a sharp decline in manufacturing and regional exports.

And again, a lot of the problem is thinking based on a relatively paternalistic environment where as long as Kenya “played by the rules” the major world economic powers that could otherwise squash Kenyan manufacturing at least conceptually would cheer Kenya on in developing into a regional manufacturing leader. In the real world of 2013 to date and in the future envisioned by the BBI, Kenyan manufacturing has to compete with Chinese manufacturing both domestically and for regional exports. And China doesn’t have the debt problem that Kenya now has.