When growing up, Phyllis Wakiaga saw herself working in the corporate sector, ‘making important decisions’. She is doing that today as CEO of the Kenya Association of Manufacturers (KAM). A trained lawyer, Phyllis started her career at KQ in 2007 where she learned business management and bilateral negotiation. In 2013, she joined KAM as Head of Policy, Research and Advocacy, ultimately becoming CEO in 2015. She describes her operating system as ‘tenacity’ and none other. She spoke with NLM’s Kevin Motaroki about her journey, what excites her and what keeps her up at night, and makes her proudest as a woman.
Election years have seldom been good for business in our country. Are you nervous about the upcoming general election this year?
At present, many of our political leaders are more focused on selling grand theoretical economic plans rather than focusing on offering practical solutions to our economic woes, which would have better, more meaningful impact on Kenyans. Political goodwill is particularly important to ensure that investors have faith that their interests are safe. Political aspirants fail to focus on practical, workable steps to encourage investment and job creation.
Those same presidential candidates have promised to create political and economic stability. As part of their promises, they need to turn around the misfortunes of an unprecedented pandemic, properly usher in an era of domestic manufacturing jobs, and establish sound international trade policies. How well do you feel these – and other issues can be robustly addressed to support manufacturing?
We recently launched the Manufacturing Manifesto, which outlines issues that need to be prioritized for our country to fully recover from the impact of the pandemic and enable socio-economic development. We have identified fiscal deficit, unemployment, an unpredictable policy and regulatory environment, high taxation, uninspiring trading in the counties, and dwindling volume of exports, among others, as some of the challenges that need to be looked into by political aspirants once they assume office.
In the same Manifesto, we recommend raising the export intensity of locally manufactured goods. This entails collaboration between Government and the business community to increase our productivity and competitiveness and, as a result, to enable us to access regional and global markets. We further recommend raising the industrial competitiveness of counties and increasing investment in manufacturing.
Additionally, it is paramount that our leaders focus on stabilizing macroeconomic factors, including high-interest rates, unpredictable fiscal and regulatory policies, high unemployment rates, and barriers to international trade.
We must also work t provide public goods for manufacturing, implement existing manufacturing-centric policies, and establish monitoring, evaluation and learning frameworks necessary for actualizing the national industrialization policy.
How are you engaging with candidates to champion these issues?
We shall engage various political aspirants, both at the national and county levels, to encourage them to put in place policies that will create a firm manufacturing base. This way, we can guarantee a solid economic foundation, productive jobs, and strong purchasing power. Beyond elections, national and county governments must center manufacturing in their economic blueprints. This is because the sector is the one true guarantee of creating productive jobs because of the supply and value chains involved.
The Association introduced an online portal in November 2021 targeting 500,000 youth enrolled in manufacturing. How well is that initiative working?
In partnership with German Development Cooperation (GIZ), KAM launched the job portal to link young people with technical skills to manufacturing jobs. The job portal has filled the gap previously experienced by manufacturers in looking for relevant skills. We have successfully provided a platform for knowledge management by ensuring work readiness and entrepreneurship training in virtual modules. We hope to increase young people’s participation in the manufacturing sector in Kenya through the portal.
Today, manufacturing isn’t about huge plants and long assembly lines, and the world has embraced the industrial Internet of Things. How well does Kenya’s infrastructure support manufacturing digitization?
To increase the number of manufacturing jobs and the sector’s contribution to the GDP to 15 percent calls on us to expand our production capacities, diversify our products, and increase the return on investment. One of the ways of doing this is through up-to-date technology, systems, and machinery. To fully benefit from digitization, our country must provide financial support to SMEs, startups, and technology and innovation hubs. As a result, local industries, including SMEs, will be better positioned to diversify their products and compete with
global brands.
It is also important to note that taking advantage of the benefits of digitization calls for skills development to respond to industrial demands and global trends. The fastest route is to invest in Technical and Vocational Education and Training (TVET). This is where the current phase of TVET, the Competency-Based Education and Training (CBET), comes in. CBET is outcome-based, demand-driven, industry-centered, and very adaptable. We see an opportunity to train technical graduates in existing machinery as they get ready for the job market through such programs.
Beyond that, we must develop a digital industrial policy to improve efficiency and ensure inclusive development. Such a digital policy would focus on improving access to the Internet and digital technologies and improving firm-level capabilities by encouraging innovation, research, and development to foster competitiveness.
From where you sit, what sectors are digitizing the fastest?
We are seeing an increase in the use of digital technologies at all points along the global value chains, from the design of products to automation in production and e-commerce. A report by the Overseas Development Institute (ODI) and the Kenyan Association of Manufacturers (KAM), ‘How to grow manufacturing and create jobs in a digital economy: 10 policy priorities for Kenya (2018)’, calls on governments to better prepare for the future by providing financial support to help manufacturers access and take advantage of the Internet and other ICT technologies. Specifically, Kenyan manufacturing risks deindustrialization if the Government and firms do not adapt to new digital technologies such as robotics and artificial intelligence.
Do you market KAM or do members fall over themselves running to you?
KAM has expansively grown its membership over the years, with a presence in seven regions across the country. Our members see value in associating with us. We offer direct technical assistance, capacity building, networking and mentorship, industry insights and analysis, and trade and export development services, to mention a few.
What has been your biggest lesson as a manufacturer?
I’ve learned and seen at work the value of resilience and sustainability. The capacity to act swiftly and be flexible when it calls for it can make or break during crises. The pandemic forced us to source essential items and raw materials locally. If we can strengthen our local value chains, from raw materials to finished products, we can multiply our resilience as a sector and country.
Who is Phyllis, outside the professional realm?
I’m a mother and wife, and at the center of it is God and my family. My weekends are dedicated to these two areas of my life.
Tell me about your childhood. What swirled around you as you grew up?
I grew up in Nairobi and went to school at Kilimani Primary, then Precious Blood Riruta. Growing up, I always knew I wanted to be a change agent, which has driven me in my career path.
I am a law graduate from the University of Nairobi, an Advocate of the High Court of Kenya, an alumnus of the Swedish Institute Management Program on Sustainable Business Leadership and Corporate Social Responsibility, and Chair of the Global Compact Network Kenya Board. I was recognized among the Top Africa Economic Leaders for Tomorrow on the Choiseul 200 Africa list 2020, Choiseul 100 Africa list 2018, and one of the 2019 Most Influential People of African Descent, Global 100 Under 40.
What business news stories do you remember that influenced your way into manufacturing? How did these stories’ experiences mould and shape you into the leader you are today?
My heart has always been in the corporate world, even when growing up. I wanted to make important decisions and implement concepts that made a difference.
As a trained lawyer, I envisioned working in the corporate sector. I got my first job in 2007 at the Kenya Airways Customer Experience department as Legal Focal Point. That role allowed me to understand the corporate business environment more deeply and cultivate a curiosity for business dynamics. Two years and six months later, I was promoted to Manager, Government, and Industry Affairs, focusing on economics and law. It is here that I learned business management and bilateral negotiation. In 2013, I joined KAM as Head of Policy, Research and Advocacy. I was keen on trade and investment and ultimately became the Association’s CEO in 2015.
Are your childhood friends or siblings surprised about where you ended up?
Not at all. I always wanted to be a lawyer and a CEO by 35. I was fully committed to achieving this and had a blueprint in my head which I followed diligently. I never wavered from it, and through sheer self-application and the grace of God, I did. I also desired to start a family, which I have. I am truly grateful.
Often CEOs are like parents, camouflaging painful truths from employees and giving out information on a need-to-know basis. Are you a transparent CEO?
I try to be transparent and collaborative in transacting my business. I am lucky that I learned the value of communication from early on. An informed team is an empowered team.
What was the best advice anyone ever gave you? Did you follow it?
My parents impressed on me the value of education and applying myself. I followed their advice, and it has since paid off.
What are you currently reading?
A Journey: Tony Blair.’ My all-time favourite is ‘The 7 Habits of Highly Effective People’ by Stephen Covey.
What other CEOs do you look up to?
I look up to the Industrialization, Trade and Enterprise Development CS, Betty Maina, my predecessor at KAM. I also admire the KenGen Managing Director, Rebecca Miano. They have made remarkable strides in their respective careers and brought tremendous changes.
What word describes you best?
Tenacious. When I set my mind on something, I work for it.
What are you proudest of as a woman and professional?
There are quite a few, and they all stem from moments when we record key advocacy wins that drive industrial growth. In 2021, the High Court declared minimum tax provisions unconstitutional and voided minimum tax guidelines. The judge also issued an order restraining the Kenya Revenue Authority (KRA) from further implementing or enforcing the provisions of Section 12D of the Income Tax Act. We also successfully pushed for the establishment of the Anti-Counterfeit Authority (ACA) to sustain the fight against illicit trade, prioritized manufacturing under the current Government under the Big Four Agenda, and championed the Buy Kenya Build Kenya initiative through activities such as the Changamka Shopping Festival.
At a more personal level, I derive immense joy in seeing Small and Medium Enterprises (SMEs), most of which are women-owned, thrive.
What excites you about your job?
No day is the same, and each new one is a chance to do something different. KAM is a business membership organization for manufacturing and value-add industries in Kenya, which means my job entails lots of engagement with different people. I learn such profound, new things every day.
What bogs you down?
The slow pace of advocacy processes. It requires persistence, resilience, and patience. Advocacy requires lobbying, which involves lots of stakeholders with diverse interests.
What do you struggle with about what lies ahead?
For all my struggles, I remind myself that God has given me the ability to make a difference, and that is all I need to do.
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