President Mwai Kibaki has challenged Kenyan investors to take advantage of the expanded East African Community (EAC) common market to increase their investments and make penetration.

President Kibaki expressed the government's commitment to the implementation of the E.A.C Common Market Protocol that is scheduled to be in place on 1st July this year.

The Head of State said the government would work with other EAC member states to upgrade road and rail networks with the aim of improving connectivity in the region.

The Common Market Protocol provides for free movement of goods, labour and services. It will be now possible for anyone to move across the border to work and trade within the five countries.

Speaking Wednesday when he officially opened the Kshs 3.1 billion Maisha Mabati Mills Limited in Ruiru, the President reaffirmed that the government would address any issues that may militate against Kenyan investors benefiting from the expanded regional common market.

On the ongoing East African Community integration process, President Kibaki said the membership of Malawi which has expressed interest was being considered while more members are likely to join in the years ahead.

President Kibaki reiterated his clarion call to Kenyans to bury their ethnic differences and unite to tap the potential in the expanded regional EAC Common Market noting that all Kenyans have equal legal rights to live and own property anywhere in the country.

With regard to the menace of counterfeit goods in the country, President Kibaki assured the manufacturers that the government would continue to improve competitiveness and productivity as it seeks to promote industrialization in the country.

"The Act comprehensively addresses the contra-band and counterfeit goods that have posed unfair competition to locally manufactured goods," President Kibaki said.

President Kibaki, therefore, warned that those found trading in counterfeit goods or goods bearing counterfeit marks will be dealt with accordingly.

The Head of State added that an anti-counterfeit agency has already been gazetted and a Board constituted to deal with the problem of counterfeit goods.

He said the iron and steel sector has been able to export products of iron and steel to Eastern and Central African countries worth 7 billion shillings and urged local industries to position themselves strategically so as to benefit from the unfolding vast market.

Noting that availability of iron sheets at affordable prices has a direct bearing on the country's ability to meet the housing needs of Kenyans, President Kibaki said the opening of the Maisha Mabati Mills Limited is a big boost to the Government's goal of providing decent housing for wananchi through provision of adequate and affordable building materials

"Besides boosting the provision of decent houses, the opening of this facility is expected to provide direct and indirect employment to 3,000 Kenyans in addition to the 3,500 employees at Devki Steel Mills Limited," the President said.

In this regard, President Kibaki said the Government would continue to engage investors in dialogue on matters relating to industrialization and economic development of the country.

Said President Kibaki: "We will also continue to pursue other policies that will further our agenda of promoting existing and upcoming local industries."

The President, at the same time, urged investors to venture into value addition which will fetch attractive returns, saying in spite of Kenya having a huge reserve of natural resources poverty and unemployment remained key challenges because these resources were exported in raw form with little or no local value addition.

The Head of State said the Government recognized that a strong private sector played a pivotal role in complementing the Government's efforts to create wealth and generate jobs for the country's youthful population.

For this reason, President Kibaki said the Government has continued to implement a wide range of measures intended to facilitate the growth of a vibrant private sector in the country.

The President pointed out that the Government has drafted the National Industrialization Policy to provide a road map that will facilitate sustainable industrialization in the country.

He said the policy will address issues affecting the industrial sector including technology upgrading, domestication and widespread use in all sectors of national production.

President Kibaki added that the policy is also geared towards improving access to affordable long-term finance and credit facilities, especially for small-scale investors in the manufacturing business and improvement and diversification of market access for manufactured products among other issues affecting the sector.

In addition to the National Industrialization Policy, the President said the Government, in collaboration with various stakeholders, has completed a Master Plan for Industrial Development which identifies several flagship projects that are to be implemented.

Noting that a vibrant export market provides a firm grounding for industrial growth in the country, President Kibaki said his Government will strive to expand market access for manufactured products in line with VISION 2030.

"Under the vision we envisage the growth of our share of the regional export market from 7 to 15 per cent," President Kibaki said.

Vice President Kalonzo Musyoka lauded President Kibaki for reviving various factories that had been run down during the former regimes besides improving the transport infrastructure in the country as part of realizing the country's development blueprint, Vision 2030.

Mr. Musyoka said there was optimism that Kenyans would get a new constitution before the end of this year.

The Vice President said the Naivasha retreat for Members of Parliament would build the necessary consensus and thrash out all contentious clauses to make the draft constitution acceptable by majority of Kenyans.

The Minister for Industrialization Henry Kosgey cited the high cost of energy and land as the some of the major challenges to Industrialization in the country.

Mr Kosgey said it was time the government considered availing land for construction of industries at subsidized costs to reduce the cost of doing business in the country and allow favourable competition with neighbours.