As Kenya pushes toward industrial growth, embracing digitisation is no longer optional but essential. In this opinion piece, Rajul Malde, Commercial Director at Pwani Oil, explores how AI, automation, and data-driven innovation can cut energy costs, improve efficiency, and make Kenyan manufacturing globally competitive — while advancing sustainability.
The rapid advance of Artificial Intelligence (AI), machine learning, and automation is transforming industries worldwide — and manufacturing is no exception. Automation, a direct product of digitisation, is taking over repetitive tasks, freeing workers to focus on complex, creative, and high-value roles. Robotic assembly lines have become standard in modern factories, boosting productivity while cutting labor costs.
Globally, digitisation has redefined manufacturing efficiency — offering powerful lessons for Kenya’s own industrial ambitions. China illustrates how automation sustains competitiveness even amid rising labor costs. The country installs nearly 280,000 industrial robots annually, slashing labor expenses by half while doubling output. India, whose economy mirrors Kenya’s in many ways, shows how emerging markets can harness technology to cut costs through AI-powered predictive maintenance. Germany, meanwhile, demonstrates how policy-driven digitisation can deliver consistent efficiency gains — with more than 90% of its industrial firms reporting annual productivity improvements of over three percent.
But digitisation is not just about speed and efficiency; it’s about making manufacturing smarter, greener, and more resilient. For Kenya, this is more than a technological upgrade — it’s an opportunity to elevate competitiveness on the global stage. With AI-driven systems, local manufacturers can cut costs, increase precision, and achieve output levels comparable to industrial powerhouses.
Energy costs remain one of Kenya’s biggest challenges in manufacturing. Electricity can account for up to 30% of total production expenses in energy-intensive sectors such as food processing and personal care. Data from Kenya Power shows that commercial and industrial consumers use about 55% of all electricity sold nationally, highlighting manufacturers’ central role in the country’s energy landscape. Improving efficiency, therefore, must begin with better energy management.
Digital solutions are already showing the way. The integration of Internet of Things (IoT) sensors and AI platforms enables manufacturers to monitor and optimise energy use in real time. Sensors embedded in machines and electrical panels gather continuous data on consumption, temperature, and performance. This data helps identify inefficiencies, schedule maintenance, and adjust operations to reduce waste. AI systems then analyse patterns and predict energy demand, allowing automated adjustments that balance usage and prevent costly downtime.
Beyond energy management, digitisation empowers predictive maintenance — spotting equipment issues before they escalate. This minimises unplanned shutdowns, extends machine life, and lowers operational costs. Robotics and data-driven systems also optimise the use of materials, water, and energy, reducing waste while enhancing quality and profitability. In short, digitisation aligns business growth with sustainability.
At Pwani Oil, we have embraced eco-friendly manufacturing practices by reducing waste, managing carbon emissions, and improving energy and water efficiency. Such measures are not just good for the planet — they make sound business sense.
As global manufacturing evolves under the pressures of climate change, rising energy costs, and supply chain disruptions, agility will define success. Digitisation provides that agility. Real-time data, scenario modeling, and predictive analytics help companies adapt faster, comply with emerging regulations, and maintain competitiveness in an increasingly sustainability-focused market.
The message for Kenya’s industrial future is clear: success in the 21st century will depend on how effectively we integrate technology and sustainability. By adopting digital tools that boost efficiency, cut emissions, and build resilience, Kenyan manufacturers can secure a stronger position in regional and global markets.
By Rajul Malde, Commercial Director, Pwani Oil
