Abstract

Establishment of manufacturing firms in any given location is expected to impact positively on employment creation and poverty reduction. Kenyan counties are no exception hence for them to continuously address existing unemployment and poverty levels, attracting manufacturing firms becomes an important venture. However, all counties are not endowed the same way leading to variations in the number of manufacturing firms they have already attracted. This paper investigated the factors that cause these variations. The study employed Negative Binomial Regression model and has found out that insecurity level, agglomeration economies, availability of water, availability of roads and cost of land causes these variations. On strength of these findings, this study recommends on the need to reduce crime incidents in order to boost investor’s confidence, enhance roads availability and also ensure adequate water for industrial purposes acrossthe counties. This can be done by availing more funds to both roads and water sectors. Further, provision of industrial parks with improved infrastructure around them will boost agglomeration economies for manufacturing firms and other investments. Also, since cost of land across counties may not reduce, leasing of industrial land to firms at a lower cost will attract and retain firms. It is envisaged that the recommendations herein will positively inform county leadership and if eventually actualized, counties will be on the right path towards addressing unemployment and poverty.

Authors and Affiliations