Nairobi — Kenya's push to industrialise is being held back by weak infrastructure and skills gaps, a new continental report shows.

The 2025 RED Index of Industrial Development in Africa by the Business Council for Africa finds that while Kenya is strong in digital finance and connectivity, it lacks key foundations needed to support industrial growth.

The index measures countries using three areas: engines of industrialisation, accelerators, and decelerators.

Kenya scores well in accelerators such as digital payments and financial openness. However, it performs poorly in core industrial drivers like reliable power, transport systems, science and technical education, and the growth of large local industries.

The report shows Kenya meets only one of the seven key industrial drivers--digital broadband--pointing to an over-reliance on technology without enough support from traditional industries.

It warns that this imbalance could lead to economic growth that does not create enough jobs or expand manufacturing.

Kenya is grouped among African economies seen as "vulnerable" or "stalled" in terms of industrial growth.

Only Morocco, Egypt, South Africa and Mauritius are ranked as having strong structures to sustain industrial growth.

The report adds that although Kenya's mobile money success has improved financial access, it has not yet led to significant growth in manufacturing or industry.