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By the end of the session you should be able to

; a) define industry and industrialization b) explain the factors that influence the location and development of industries.


Industry refers to any form of economic activity through which people produce goods and services for their consumption or sale.Industrialization is the process through which a country establishes manufacturing industries.

Factors influencing the location and development of industries

Several factors influence the location of and development of industries.These include:

  • Availability of raw materials
  • Availability of power
  • Transport and communication
  • Ready market
  • Adequate water supply
  • Government policy
  • Industrial inertia
  • Availalability of capital

Availability of raw materials

Availability and constant supply of raw materials are important in the establishment of any industry. Industries that use heavy and bulky raw materials, Perishable raw materials are located at or near the source of raw materials. For example sugar cane and tea processing industry.

Availability of power

Power is essential to operate machinery. Although industries are not necessarily located in areas where power is produced they tend to be established in areas where power is cheap to supply. For example Jinja is an industrial town. The industries were established due to the generation of Hydro Electric Power at the Owen falls dam.

Transport and communication

Accessible areas are likely to attract industrial investors because raw materials can be transported to the factory with ease and finished products can reach their destination without delay. For example Ketepa tea factory along kericho-Nakuru road. Companies rely on communication to keep their suppliers and consumers in touch.

Ready market

Goods produced in any industry must be sold to make the operation economically viable. Most industries are located in urban centers whose population is high and have purchasing power. Industries which manufacture perishable and fragile products are located near the markets.


Successful industrial development require adequate labour. Various industries require different types and amounts of labour. Some are labour intensive while others are capital intensive Industries requiring a lot of skilled labour are located in the urban areas.

Adequate water supply

Processing industries such as coffee pulping and sugar cane processing require a lot of water. They are located where large permanent rivers, lakes or other sources of water are found. For example Mumias sugar factory near river Nzoia, Sony sugar factory near river Sare and Webuye paper mills near river Nzoia.

Government policy

The government may encourage or discourage the location of industries in particular area. For example the Government has a policy of decentralization of industries to reduce rural urban migration. Eg. Pan African Paper mills industry. Decentralization of industries may also be for security reasons so that in case of a terrorist attacks all industries will not be affected.

Industrial inertia

Industrial inertia is the tendency of an industry to remain in a particular place even when the original locational factors or advantages are no longer important. For example most industries in Ruhr industrial region of Germany have remained at the same site even when the coal fields were closed.

Availalability of capital

Location of an industry requires a lot of capital. The money is required to purchase land, raw materials, and equipment.

Types of industries

There are mainly three types of industries. They are; primary industries, secondary industries and tertiary industries.

Primary industries

They are mainly involved in the exploitation of natural resources. For example, mining, fishing, forestry and agriculture.


Secondary industries

These use raw materials from primary industries to change them into semi-process or finished product.For example coffee factories, cotton ginneries and use of steel to make machinery. Secondary industries are categorized into two:-

  • Heavy industries
  • Light industries

Tertiary industries

These are industries that provide services and are not producing any tangible item, for example transport and communication, recreation, entertainment, tourism, banking and insurance.

Distribution of industries in Kenya

Kenya is the most Industrialized country among the three East African Countries.Some industries that Kenya has include;

  • Market oriented industries
  • Proximity to raw materials industries
  • Skilled Labour oriented industries
  • Government policy industries

Market oriented industries

  • Wheat and maize milling industry
  • Brewing, industries
  • Confectionery and baking industries
  • Cooking oil and soap manufacturing industries
  • Meat industries
  • Toiletries
  • Glass industriess

Proximity to raw materials industries

  • Food and crop processing industries
  • Refining crude oil
  • Textile industries
  • Leather industries
  • Cement industries
  • Cement industries
  • Lumbering industries
  • Clay products industries
  • Steel rolling mills

Skilled Labour oriented industries

  • Vehicle assembly industries
  • Pharmaceutical industries

Government policy industries

EPZ Export Processing Zones industries at Athi river

The Mariakani and Kikuyu

Significance of industrialization to Kenya

The following are benefits that a country like Kenya could enjoy from being industrialized;

Earn foreign exchange

Employment opportunities

Improved infrastructure

Increased agricultural production

balance of trade

Diversification of the economy

foster good international relations

The formation of co-operative societies

Growth of settlement

Earning foreign exchange

Industrial products are exported to earn foreign exchange which is needed for international trade. The level of industrialization reflects the amount of goods exported thus helps to stabilize Kenya's economy.

Employment opportunities

Many people are employed in the manufacturing industries enabling them to earn income and thus enables them to have higher standards of living.

Improved infrastructure

when an industry is established in an area there is general improvement in the provision of social amenities such as roads, schools, health centers, electricity and water.

Increase agricultural production

The cash crops provide raw materials to the industries and stimulates more agricultural production. The employees in the processing industries also provide ready market for the food  crops and horticultural products produced in the vicinity. This also encourages the farmers to engage in more production. The manufactured fertilizers from the industries also improves on agricultural production.


Industries also help in balance of trade

The processing industries improve on the quality of the products being exported and hence earn more foreign exchange. This improves on the balance of trade. Kenya used to export hides and skins that fetches little foreign exchange, but currently the country is able to export manufactured shoes which fetches more foreign exchange.

Diversification of the economy

Establishment of many industries helps the country to diversify her economy. Reliance on one sector for example agriculture is a risky undertaking. In case of failure due to climatic changes or world market price fluctuations.To address this Kenya has established a variety of industries such as motor vehicle assembly in Nairobi, Thika and Mombasa and export processing zones in Athi River.

Industries foster good international relations

Availability of Industrial products encourages international trade and thus fostering better relations between trading partners.


The formation of co-operative societies.

The establishment of industries in the country has led to the formation of co-operative societies. This has made the members access credit facilities that theycan use to start small projects.

Growth of settlement

The establishment of manufacturing industries has led to the growth of settlements. This has led to the development of such areas since social amenities and general infrastructures are provided. For example Awendo and Mumias that have developed into urban settlements.


Problems facing industries and their possible solutions.

There include:

shortage of capital

shortage of raw materials

poor infrastructure

Inadequate market

Shortage of capital

The industrial establishments especially in developing countries are faced with the problem of inadequate capital thereby forcing them to acquire loans from both local and international financial institutions. The interest rates of these are normally very high and sometimes these loans come with conditions like liberalization and retrenchment which hurt the people that they are supposed to serve or help.


The industries employ efficient technology to reduce production costs; foreign investors who have the capital are encouraged to invest in the industrial sector.The government could give tax exemptions on land to be used for industrial development.


Shortage of raw materials

Industries that are agricultural oriented at times experience shortage of raw materials due to climatic conditions such as drought. Industries that depend on imported raw materials may experience shortages due to strict foreign exchange controls at certain times.


The agricultural sector should be improved so as to increase the production of raw materials. Local raw materials could also be supplemented with imported raw materials. Trees could also be planted to increase raw materials required for timber related industries.

Poor infrastructure

Many developing countries have poor infrastructure such as roads, railway lines and facilities for handling the movement of goods. This may affect the movement of raw materials to  the factory and cause delays. Also finished products may become expensive to distribute to distant markets.


The government should improve transport and communication throughout respective countries, by building better roads and railway lines.

Inadequate market

Most developing countries experience inadequate market to sustain local production due to the low purchasing power to the majority of the people. Other local people prefer purchasing imported products.


The local manufacturers and governments should explore external markets within particular regional blocs such as COMESA. Transport and communication networks in the region should be improved and taxes on raw materials should be lowered to reduce the prices of the products. Aggressive marketing campaigns should also be undertaken for the locally manufactured products.

Problems associated with industrialization and possible solutions

These are problems associated with establishment of industries. They include:


Tendency to neglect agriculture

Displacement of people

Reduction of job opportunities

Depletion of resources

Repatriation of profits.

Erosion of traditional values.

Rural-urban migration.


Some manufacturing industries emit toxic gases such as sulphur dioxide and carbon monoxide into the atmosphere which are harmful to people and vegetation. Some of the gases corrode buildings. Acid rain also results from the pollution of the atmosphere and is destructive to vegetation and aquatic life. Industrial effluents pollute rivers and lakes thus making water become harmful to human beings and aquatic life.

Solution; the government should put legislation and policies against pollution of the environment. Manufacturing industries must ensure that effluent is treated before being discharged. Workers in industries should be provided with protective gear. Manufacturing industry should do research on raw materials that do not pollute the environment.

  1. Provide a video of Bamburi Cement Factory emitting the dust at night.(  Find out the right time of emission)
  2. Provide a photograph of industrial workers wearing dust masks.

Tendency to neglect agriculture

Industrialization attracts the people to the towns in search of employment away from rural areas. This lowers food production since the more energetic youths move into urban areas and the older people are left. The industries concentrate on cash crop production at the expense of food crops hence reduced food production.


the government should make agriculture more attractive by offering better prices for agricultural products.

Displacement of people

Some industries established in areas inhabited by people may force them to vacate that area and move elsewhere. For example titanium mining at Kwale district in Kenya, Sony sugar factory at Awendo in Migori district.
Solution: the government should compensate the displaced people.

Reduction of job opportunities

Industrialization leads to new innovations that lead to replacement of man power. This leads to reduced employment opportunities. E. g use tea picking machines in Kericho
Solution: people are encouraged to be self employed. Industries are also discouraged from laying off their staff.

Depletion of resources

When more industries are established in the country demand for raw materials increases. This leads to depletion of some resources needed as raw materials.

Solution: encourage sustainable use of resources.


Repatriation of profits.

Most of the industries are foreign owned such as General Motors, Firestone, Unilever and Coca-cola. Therefore they repatriate the profits accrued to their country. This leaves very little behind for local use.

locals should be encouraged to invest in the country. The government should increase share holding in multinational companies.

Erosion of traditional values.

Industrial development leads to changes in the way people live particularly in urban centers. This conflicts with the traditional values hence loss of cultural identity.
Solution:The Government should ssensitize the society on the importance of their culturals values.

Rural-urban migration.

Establishment and development of industries has led to rural-urban migration where young people move to towns to look for employment leading to labour shortages in the rural farms.
Solutions: the government should decentralize the industries to rural areas through the introduction of the incentives, electricity, clean water and entertainment facilities in the rural areas.

Cottage industry in Kenya and India.

Definition of cottage industry.

Cottage industry involves making products using hands and simple tools, Particularly in the homes. In Kenya cottage industry is referred to as Jua kali.

Cottage Industry in India

Cottage industry in India started during the medieval time and has continued to grow today. The people involved have individual skill or talent. This type of industry is highly developed and is practiced virtually in every village.

Cottage industry in India involves weaving , making clothes, brass ware, silver ware, ornamental ivory, jewellery, trinkets, carpets and handicrafts.

Characteristics of cottage industries in India

  • The industry is owned by the family.
  • Industries are labour intensive
  • Industries are widespread all over the country.
  • Labour is provided by individuals or members of the family.
  • Craft persons are skilled.
  • Locally available materials are used.
  • Most of the products are sold in the local markets but few are exported.
  • Simple tools are used.
  • Capital investment is small.

Surf the internet to get photographs on cottage industry in homes and the products made eg. Handicrafts, carpets and ornamental ivory.

Factors that have contributed to development of cottage industries in India.

  • The activities involved can be carried out anywhere.
  • Availability of simple and affordable tools.
  • The urge of the people to earn income.
  • There is availability of labour provided by the large population.
  • There is a high demand for products from the cottage industries.
  • The Indians are highly skilled weavers.
  • The Indians are keen on decorations.


Problems facing cottage industries in India.

  • Inadequate of capital because most of the people in India are poor.
  • Difficulties in obtaining raw materials at affordable prices.
  • Competition from other industries making similar products.
  • Difficulties in marketing the products to other countries.

Benefits of cottage industries in India.

  • Many people are employed.
  • It provides market for locally produced raw materials.
  • People earn income hence improve living standards.
  • The country earns foreign exchange through exported products.
  • It diversifies the economy from the agricultural sector which employs two thirds of the population.
  • People get high quality products at affordable prices.

Similarities between the cottage industry in Kenya and India

There are several similarities between cottage industries in Kenya and India.

  • They use locally available raw materials.
  • Both are labour intensive.
  • They are widespread in both countries.
  • In both the products are sold either locally or are exported.
  • In both countries, the industries are owned by individuals.
  • In both countries they involve skilled crafts persons.
  • In both countries' the economies have diversified from agricultural sectors.

Differences between cottage industries in Kenya and India

  • Kenya government supports cottage industry while in India individuals invest their own capital.
  • Most of the products from Kenya are exported and a few sold locally while in India most of the products are sold in the local markets but a few are exported.
  • Most of the cottage idustries in Kenya are found in urban centers while in India the industries are found both in rural and urban areasin all parts of the country.

Characteristics of cottage industry in Kenya.

  • People use locally available raw materials to make various products.
  • Skills are acquired informally.eg pottery industry has been in most communities in Kenya for a long time.
  • Some of the products are sold to tourist as souvenirs and some exported to other countries such as South Africa, Britain, and Germany eg wood carving of the Akamba people and soap stone carvings of the Abagusii community.
  • Most of the cottage industries are owned by individuals.

The government supports cottage industry through giving artisans sheds, loans are given to entrepreneurs and village polytechnics have been constructed to train for necessary skills.

The government of Kenya has realized the importance of the jua kali sector and provides loans and technical assistance to the artisans through the Kenya Industry Estate (KIE) so that they can develop their businesses.

Examples of cottage industry in Kenya

Some of the cottage industries in Kenya are:

  • Pottery in Kendy bay in Homa Bay county.
  • Woodcarving in Kitui and Machakos counties.
  • Soapstone carving in Kisii county.
  • Weaving baskets in Muranga county.

Iron and Steel industry in the Ruhr region of Germany.

Ruhr industrial region derives its name from the river Ruhr which is a tributary of river Rhine. One of the leading industries in the Ruhr region deals with iron and steel. Iron and steel industry is one of the most important industries in the present advanced technological world.

Factors that led to the development of iron and steel industry in the Ruhr region.

Availability of key raw materials such as iron ore, limestone and coal led to the establishment of the iron and steel industry.

There was availability of an entrepreneurial culture and capital.

Entrepreneurs in the region contributed to the development of iron and steel industries. e g The Krupp family and Ruhr Kohle provided a lot of capital.

The Ruhr conurbation of large industry towns such as Dortmund, Essen, Dusseldorf and Duisburg provides ready market. Its centrality in Europe allows it to access a large and ready market.

The Ruhr coal field is the largest and most economical to mine in Europe. The coal field has a variety of coals such as anthracite and coking coal used in the iron and steel industries as a source of power.

The rivers Rhine, Ruhr and Lippe Provide the much needed water in the factories for cooling, cleaning and producing steam in the boilers.

Easy water transport.

Availability of water ways such as rivers Ruhr, Emscher and Lippe all links to the Rhine river canals that were constructed also improved the water transport e.g Dortmund EMS canal.

Availability of skilled labour.

The people in the Ruhr region had developed skills in metal work and hence provided the much needed skilled labour in the Iron and steel industry.


By the end of the topic, you should be able to

explain the factors that contributed to the development of car manufacture and electronic industry in Japan.

Car manufacture and Electronics Industries in Japan

The rugged landscape in Japan discouraged agricultural activities and therefore put a lot of effort and applied modern technology in the development of manufacturing industries.The following factors contributed significantly to the development of car and electronics industries in Japan.

  • Availability of power in Japan and a nuclear reactor
  • Availability of manpower
  • The Japanese people are hard working and enterprising.
  • Availability of capital.
  • Advanced technology
  • Abundant water supply.
  • Accessibility
  • Availability of markets
  • Affordability of products
  • The government policy

    Major car manufacturing zones in Japan.

    • Tokyo-Yokohama. The cities here are Tokyo, Yokohama, Hitachi and Chiba.
    • Osaka-Kobe industrial zone. This is in Honshu island and manufacturing cities include; Kobe, Osaka, Kyoto, Otsu, Wakayama and Akashi.
    • Nagoya industrial zone; this is also located in the Honshu island. The cities here are Nagoya, Honda, Toyota and Okazaki.

    The government policy on industrialization has also promoted rapid development of electronic industries.

    Availability of power

    Japan has developed almost all its hydro electric power resources to provide power and these accounts for 23% of its energy needs. It also has power from nuclear energy.

    Availability of manpower

    Japan has highly skilled labour force as its education system puts a lot of emphasis in the development of technical and scientific skills. This pool of highly skilled workers leads to the development of electronics and automobile industries in Japan.

    The Japanese people are hard working and enterprising.

    Japanese people are highly discipline and are known to be workaholics to the extent of overworking themselves. They have entrepreneurial spirit which also helped in the establishment of many electronics and automobile industries.

    Availability of capital.

    Japan gets a lot of revenue from industries such as ship building, fishing, textiles and tourism making it one of the richest countries of the world. The revenue acquired from such industries is used to develop other industries such as automobile and electronics industries.

    Advanced technology

    The technology used in the electronics and automobile industries so advanced such that all the plants are computerized leading to more efficiency and massive production of high quality products. The automation employed here also cuts on costs of production.

    Abundant water supply.

    The water in Japan comes from the many rivers and small lakes .water is very important in the iron and steel industry which is the main supplier of raw materials for the car manufacture and electronic industry.


    Japan being an island country is accessible to many parts of the world by sea ways. She has an indented coastline with many natural harbors and the major industrial areas located near major ports for example Tokyo, Osaka, and Nagoya. This makes the transport of both raw materials and finished products very easy.  Japan also has efficient internal road and electric train network which also serve in the distribution of finished products in domestic market.

    Availability of markets:

    There is great demand for Japanese cars both locally and abroad thereby contributing to the rapid growth of the automobile industries. The rising living standards of people in most parts of the world have led to a great market for the electronics products and the increased market has led to more development of industry.


    Affordability of products.

    Japan cars and electronics are sold at affordable prices compared to the cars and electronics from European countries. The cars are also cheaper to maintain, are more durable, comfortable and their spare parts are also cheap and readily available. This gives them a competitive edge in the world market.

  • .




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