The following are factors that have hindered industrial development in Kenya.
- The problem of multi nationals whose interests do not favour Kenya’s progress. Multi-national co-operation repatriate capital to their own home countries
- There is shortage of strategic raw materials e.g. petroleum, diamond. Cotton for textile industries. Many industrial companies use imported raw materials.
- Foreigners, who pass policies not friendly to the country, hold managerial positions in industries.
- Mismanagement of major industries and lack of transparency I parastatals.
- Over concentration of industries in few areas leading to negligence of other areas. It also has led to related problems of industrial concentration like the social ills.
- Competition from the industrialized nations who dominate the market and produce high quality goods.
- Poverty limits industrialization. A poor population means a small domestic market thus hindering industrial development.
- Products are produced with low technology hence small quantities.