Kenya Eyes Green, Digital Factories in New Industrial Push

6 November 2025

Nairobi — Kenya is betting on green energy and artificial intelligence to anchor its next phase of industrial growth, as the government unveiled a renewed plan to make the country a regional manufacturing hub.

Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui speaking during the Kenya Industrialization Conference 2025 in Nairobi said the country's industrial policy is entering a transformative phase powered by sustainability and technology.

"Kenya's industrial transformation now rests on three interlinked pillars industrial infrastructure through County Aggregation Industrial Parks, digitalization and AI for innovation, and greening our industries to meet climate commitments," he said.

"These are not separate pursuits, they reinforce one another and define our competitiveness in a low-carbon global economy."

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Kinyanjui highlighted that Kenya's manufacturing strategy now aligns with global climate goals while leveraging artificial intelligence to boost efficiency, innovation, and market access.

Among the flagship initiatives, Kinyanjui singled out green hydrogen as a frontier of industrial decarbonization, positioning Kenya as a leader in clean energy innovation.

The government, he said, is moving from policy to practice, with demonstration projects around Olkaria already showcasing the viability of Power-to-X technologies.

The ministry is also collaborating with the United Nations Industrial Development Organization (UNIDO) to help local industries transition to low-carbon production while remaining competitive in export markets.

In the automotive sector, Kenya is reviving its vehicle assembly industry through the National Automotive Policy and E-Mobility Framework, designed to attract investment into local assembly, battery value chains, and electric mobility infrastructure.

Kinyanjui urged stronger collaboration between public institutions, private investors, and development partners to scale green industrial finance and innovation.

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