Kenya’s steel industry is operating at only 36pct of its installed production capacity of 4.2 mln tons as manufacturers continue to struggle with high energy costs, low-priced imports and the influx of substandard steel products, industry representatives said during the East African Steel Summit in Nairobi.
According to Kenya Association of Manufacturers (KAM) Chief Executive Tobias Alando, the steel sector accounts for around 13pct of the country’s manufacturing output. However, rising production costs, expensive raw materials, policy uncertainty and weakening exports continue to constrain industry growth.
Alando noted that Kenya imported around 1.66 mln tons of iron and steel products in 2025, while exports totaled only about 197,000 tons, highlighting the country’s continued dependence on imported steel despite substantial domestic production capacity.
He said increasing local steel production would reduce import reliance and support key sectors including construction, transport and energy, while major infrastructure projects and regional trade agreements such as AfCFTA, COMESA and the Kenya-EU Economic Partnership Agreement are expected to support future steel demand and export opportunities.
Meanwhile, KAM Metal and Allied Sector Chairman Bobby Johnson called for stricter enforcement of quality standards and closer cooperation among East African Community (EAC) member states to curb the inflow of substandard steel products and promote fair competition for local manufacturers.