Kenya last week launched a three- year rural industrialization project aimed at increasing the amount of value addition in the agricultural sector.Industrialization Permanent Secretary Dr. Karanja Kibicho told journalists in Nairobi that the project dubbed one village one product (OVOP) will be carried out with technical assistance of the Japan International Cooperation Agency (JICA). “The programme aims to assist rural communities to become economically empowered through utilization of local available resources, which have previously been sold in the raw or unprocessed form,” Kibicho said.He added that project will help villages in Kenya identify a local product which can then be processed in cottage industries for local consumption and for export. “In total, 25 districts across the country will receive assistance to add value to their local products, which range from forestry, fishing, horticultural and dairy produce,” he said. “The programme will help Kenya achieve its goal of increasing the share of manufacturing to the gross domestic product (GDP) which currently stands at ten percent,” the PS said.Kibicho said that most of the country’s manufactured exports are destined to neighboring African countries. “Over 20 percent of export earnings are from the industrial sector and we hope the OVOP project will increase this figure by taking advantage of Kenya’s industrial base,” he said. The PS said that through this project, the manufacturing sector can overtake the agricultural sector just like it has happened in developed countries. He added that most of the new industries will rely on the agricultural sector to provide raw materials. “Currently the amount of value addition is very little in Kenya resulting in relatively low export and foreign exchange earnings for the country,” he said. “Through the use of more value addition, the country can net more foreign earnings without necessarily increasing the volume of agricultural produce,” Kibicho added.Ministry of Industrialization Director of Industries Support Services Erastus Kimuri said that the government will prioritize the infrastructure investments in the rural areas so that manufacturing can be competitive even in the remote areas. “Traditional industries want to locate in Nairobi, which currently contributes over 60 percent of GDP but this programme will reduce this trend,” Kimuri said. He added that business groups will be trained and then linked to financial institutions which will provide the required capital. “Financial institutions require very bankable projects before they lend their money so the training will be enable the businesses involved in value addition meet the tough threshold, given that the main challenge for business groups who have already identified a product to add value,” he said. Kimuri said that the project will be a vehicle to drive industrialization in Kenya especially through cottage industries in rural areas. Lewell Njihia coordinator of the OVOP project said that he intends to make Kenya the model country of OVOP in Africa. “Kenya has an advantage as it has a lot of strong institutions and cooperatives which are essential to make rural industrialization succeed,” Njihia said. He said that the project aims to add value to products so that they are marketed by highlighting special characteristics only found in local areas. Njihia added that the country can only achieve its goal its development goals if it expands its industrial sector.
