 Chair, ladies and gentlemen, I'm excited to participate in this conference, Industrial Development and Policy in Africa. And mine is basically to share some experiences in Kenyan context. And what we are reviewing is basically what has been happening in Kenya given that as we know it, the level of industrialization in Kenya is not a desirable state. Yet, from what we are learning from the conference, basically industrialization matters when it comes to the country's growth. Basically, myself and Peter and Diana, thank you. Can we have now? Peter and Diana constitute part of the learning to compete Kenyan team and basically what I'm presenting on behalf of myself and my other two colleagues. Like I've said, why we should be concerned with industrialization is the experiences over the world is basically that for a country to grow, it has basically to give premium to the industrialization process. Now, one may ask, since independence hasn't there been any interventions basically to promote industrialization in the country and basically for us to know what has been happening, we need to look at the policies basically that were made over time. We need basically to unpack the industry in terms of structure and obviously the productivity issues. So in terms of outline, basically we want to look at the evolution of the industry itself and the policies thereof so much so that we can be able to examine the successiveness of these interventions. Again, when we are looking at the structure, the key indicators basically is in terms of the sector composition, manufacturing, employment and the size factor. Again, we want to reflect on the productivity because just like what Ben said in the morning, basically we need to reflect on the industrial productivity and out of that we can be able to again appreciate the emerging issues from what we are going to learn. Now, in Kenyan context, when we are talking of the industry, well, in general, industry will not just concentrate about manufacturing. There's the element of mining and quarrying. There's building and construction and access and water. But when we talk about industry in Kenya, the emphasis basically is on manufacturing because of the relative contribution to GDP. You find that except for manufacturing, the contribution of other constituents of industry is small. But basically this is changing because for those who have been following Kenyan development, we have a lot of discovery in the recent years. Last year we discovered oil in northern province. We also have a lot of natural gas in off-soul region. From about 2005, again, we did discover quite a substantial amount of titanium in the coast province and also coal in the eastern region. But the extent to which we have basically exploited titanium and coal has been compromised by the appropriation issues between the local communities and basically the investors that have had some interest in those areas. So basically we are still in the defense stage in terms of basically usage of these natural resources. So we are saying that at this point in time, even if manufacturing is basically the major player, things may change in the short run depending how fast we are able to use the new discoveries. But now talking about manufacturing, before independence there was also much of manufacturing one could talk of because we all know that during the colonial time basically most of the third world countries including Kenya were just being used as sources of raw materials, but immediately after independence the new government was at a pressure basically to be able to establish a strong industry and there were immediate measures. One was obviously to attract the basically the foreign direct investment and also to create capacity within. So basically appropriate regulations were put in place and we can be able to appreciate immediately what followed because of the country being a good source of cotton. Obviously the natural way of industrialization was to come up with textile industries basically by through foreign direct investment and histories of 60s and 70s we had quite a number of strong firms basically maybe would have been a household names in quite a number of countries. Later on again through foreign direct investment and joint ventures again through agro processing there are a number of companies that came up. Now beyond those two that basically were that agro based we had quite a number of metro industry coming up basically out of the Asian Kenyans of Asian origin who are working on the railway and basically those who migrated to Kenya in the early years of independence basically they invested in steel industry and again also there was a lot of joint sponsorship and also foreign direct investment in cement industry. Now we may ask ourselves what are the status of these industries and how do they relate also with the policy regimes that identify the evolution of industrial policies. Now looking at the industrial processes for the last 50 years we can group them into two. In the early years we had the import substitution from 60s to 70s and basically after that we had market liberalization and data learn export living policies. Just a short appreciation of import substitution basically if one was to reflect on its successiveness we can identify that this period the first two decades the country experienced high industrial growth and quite a number of industries we see today they have their foundation that were basically as a sort of import substitution strategy but the negative side of import substitution strategy basically was the fact that it created an export bias and obviously because of the limited local demand it developed low momentum over time. So one of the issues that one can ask is that is this basically what the Asian countries or the newly developed countries started with and just a simple analysis will say yes but the issue was at what point basically they make the right five minutes. There is intervention in terms of going to export living growth. Market liberalization of 1980s basically was both internal and external living in terms of structural management programs. Under that of it there wasn't much to drive home because what happened is that our local industries were not strong enough to be able to survive in a liberalized market and also locally the government was not, I mean it didn't move with the kind of momentum that was supposed to do in terms of encouraging industrialization. Now again just because of the time export different policies from 1990s and basically up to the year 2000 again in terms of what the government did it was able to promote export through a lot of platforms. You must have heard of export promotion camps so compensation scheme and manufacturing of a board basically trying to compensate exporters in terms of the taxes that they pay once they export and trying to compensate for those taxes so as to basically promote export. Now from 2000 up to today this is what I would also compare with what we are talking of that in the recent times basically Kenya and other countries more or less have a libertization of the industry because we see a lot of changes. From 2000 with the new government we had economic government strategy paper and whose emphasis was on a macro and business environment again after that period because it was meant for 2003 to 2007 basically we had the catch and fiction 2030. Now in terms of what matters for a country to develop it is basically in terms of how serious the government is in terms of working or implementing the policies that it has come up with. So the period 2000 and 2003 to 2007 was basically characterised by a lot of growth basically in terms of infrastructure in terms of power and so forth. Now beyond that we have the fiction 2030 which we are trying to implement but we have come up with two other papers to be able to implement that. The session of paper number nine of 2012 of a national industrial policy paper. Now what I've just been discussing basically and obviously some of us may have I mean we may have led the paper we can summarise it in that in terms of the successiveness of those interventions again because of time I will not go into that. But if we look at all over the period particularly 2007 because of lack of structure transformation you find that the contribution of GDP basically has remained the same in terms of manufacture or growth basically we see some lot sort of correlation because of the agro-based nature of industry with the industrial growth that's basically what we are running from that diagram. In terms of structure again I'm conscious of the time we can reflect on what are the important sectors obviously food processing dominates the others are beef ledges and tobacco and obviously because of this construction industry and metallic product basically contributes a lot. Now when we affect on the employment the sectors to appreciate basically the obviously food manufacturing is important but we also have textile and metal products. You find some sort of divergence in terms of contribution to GDP and those employment creation basically in terms of growth the sectors to emphasise are not necessarily the same sectors you are to emphasise if you are to consider accumulating more employment. You find that where metals and metallic and beef ledges tobacco basically contribute a lot when it comes to employment basically they are not the industries to reflect on. Looking at our manufacturing for the sake of comparative study that you are to undertake with other partners in running to compete we have expressed that one in dollars and what we want to appreciate is in terms of exports. Thank you chair. And those are major exports for the size factor in the industrial establishment basically we want to appreciate that size matter in labour productivity because you find that it is higher basically for large industries and smaller and smaller industries and again when it comes to the number of establishments you realise that the number of industrial establishments that are formal basically about the same but if one was to analyse the number of establishments within the broader picture 70% of our farms are smaller farms so meaning that quite a number of smaller farms are not registered and that explains what has been happening. In terms of total productivity again for comparative analysis we have expressed this in USA dollars up to the 19,000 I mean 2008 obviously there is 2009 and 2010 but we have not been able at this point to reflect the figures because of a change in computing consumer price index but obviously this can be compared from other studies what is happening in terms of what are the industries that reflect high productivity food obviously comes fast and followed by textile and upper and leather industries but for those basically where a number where basically the contributors are small scale or smaller farms obviously the productivity is low. Again in terms of using any other I mean some other data particularly the World Bank 2007 again what we have put there is simply the methodology we use. Sorry Jacob I would have to stop you there. Okay. Thank you.