Kenya Warns About Dominance of Ethiopian Products

Ethiopia's items are controlling the market industry, jeopardising Kenyas' capability to attract foreign investors.

As a result of weak industrialisation policy in Kenya, the Kenya Planning Commission have warned that Ethiopia's products could flood Kenya's market, causing difficulties for the country in attracting foreign investors.

"The growing trend of Ethiopia's manufacturing sector, with the tendency of high production costs in Kenya, will hinder the country to benefit from the strategic agreement made between the two nations," said Saitoti Torome," planning principal secretary of Kenya.

The manufacturing sector's contribution to the GDP is declining, even if there was an increase in value terms to 4.2 billion dollars in 2014/15 - from 4.1 billion dollars in 2013/2014.

Both countries are collaborating to build a one-stop border post at Moyale to facilitate the movement of goods and people. Ethiopia have completed 47pc of the 500km road construction to link Addis Abeba to Moyale. This will be finalised in September 2018. On Kenya's side, the construction of the Isiolo-Moyale road is currently 95pc completed.