Kenya’s steel manufacturers have intensified calls for urgent policy reforms aimed at lowering production costs, eliminating substandard imports and creating a predictable business environment to unlock the full potential of the country’s steel industry.
The appeal was made during the opening of the East African Steel Summit at the Sarit Centre in Nairobi, where manufacturers, policymakers, investors and other industry stakeholders warned that addressing long standing structural challenges is essential if Kenya is to maximize local production and compete effectively in regional and international markets.
Speaking during the summit, Kenya Association of Manufacturers (KAM) Chief Executive Tobias Alando said the country’s steel industry has undergone remarkable transformation since 1948, evolving from the manufacture of nails into a diversified sector producing hot and cold rolled steel, wire products, tubes and pipes, fabricated steel and aluminium products.
Alando noted that the industry now accounts for approximately 13% of Kenya’s manufacturing sector and contributes about KSh34 billion in taxes annually, underscoring its strategic role in driving industrial growth and economic development.
Despite these achievements, he expressed concern that much of the country’s steel production capacity remains underutilized.
He revealed that Kenya has an installed production capacity of 4.2 million tonnes but is currently operating at only 36%. He attributed the low capacity utilization to high production and raw material costs, declining exports of finished steel products, an influx of cheap imports and unpredictable tax policies.
According to Alando, Kenya imported approximately 1.66 million tonnes of iron and steel products in 2025 while exporting only about 197,000 tonnes, highlighting the country’s continued reliance on imported steel despite having sufficient local manufacturing capacity.
He said increasing local steel production would enable Kenya to meet growing domestic demand while reducing dependence on imports, deepening value addition, strengthening local supply chains and creating more employment opportunities.
“Despite the capacity we have built over the years, Kenya continues to import substantial volumes of steel products. This presents an opportunity to expand local production, deepen value addition, strengthen local supply chains and reduce our dependence on imports,” Alando said.
He emphasized that a vibrant steel industry is fundamental to Kenya’s industrialization agenda because it supports key sectors such as construction, transport, energy and manufacturing, which are critical drivers of economic growth.
Alando observed that demand for steel is expected to rise significantly as Kenya continues investing in affordable housing, roads, railways, ports, industrial parks and energy infrastructure. He added that local manufacturers also stand to benefit from expanded export opportunities through the African Continental Free Trade Area (AfCFTA), COMESA and the Kenya European Union Economic Partnership Agreement.
However, he cautioned that these opportunities can only be fully realized if the country addresses the structural challenges affecting the industry’s competitiveness.
He identified high energy costs, substandard and illicit products, regulatory uncertainty, limited access to affordable financing and increasing pressure from low cost imports as the key obstacles facing manufacturers.
Alando called for stronger collaboration between the government, industry players, financial institutions and development partners to create an enabling environment that supports investment, promotes local production and enhances Kenya’s competitiveness in the global steel market.
KAM Metal and Allied Sector Chairman Bobby Johnson said the growth of the steel industry is closely intertwined with East Africa’s infrastructure expansion and industrial transformation.
He noted that every home, road, railway, hospital, school and industrial facility being constructed across the region depends on quality steel products, adding that local manufacturers are fully prepared to meet the growing demand created by ongoing investments in affordable housing, transport, energy and other infrastructure projects.
Johnson also called for stricter enforcement of quality standards and greater cooperation among East African Community Partner States to curb the influx of substandard steel products into regional markets.
He said consumers must have confidence that the steel used in buildings and public infrastructure meets the required safety standards, adding that harmonized standards consistently enforced across the region would protect consumers, support compliant manufacturers and strengthen the competitiveness of East Africa’s steel industry.
The two day East African Steel Summit, convened by the Kenya Association of Manufacturers in partnership with Steel Giant, brought together more than 400 delegates and exhibitors, including steel manufacturers, processors, traders, policymakers, equipment and technology providers, financiers and other stakeholders across the steel value chain.
The summit is providing a platform for industry leaders to deliberate on the future of steel production, trade, technology, investment and sustainability, with stakeholders expressing optimism that stronger collaboration and supportive policies will position Kenya and the wider East African region as competitive steel manufacturing hubs capable of driving industrialization and economic transformation.
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