Traders fear Kenyan goods could face stiff competition in AfCFTA
McDave factory in Nairobi that manufactures home and personal care products. AfCFTA is set to bring benefits such as job creation, movement of goods and skills transfer. PHOTO | FILE | NMG
Kenya’s manufacturers are worried about losing out on the benefits of the African Continental Free Trade Area (AfCFTA), due to a high cost of production that may hurt their competitiveness.
The Kenya Association of Manufacturers (KAM) has tallied local costs of production to be higher than the continental average, meaning their goods may face stiff competition in trading across Africa. Kenya’s global competitiveness index is about 55 percent, while it ranges between 35 to 60 percent in Africa, an indication of a constrained business environment.
