Kenya manufacturers face hard times as earnings drop

An aura of gloom has engulfed the manufacturing sector in Kenya as hopes of industrialisation-led growth fade away due to the dwindling fortunes of leading companies.

That the sector is in a slump became evident last week when Nairobi Securities Exchange-listed companies released financial results that showed declining revenues and issued profit warnings, joining a retinue of manufacturers in East Africa that are struggling to sustain profitability.