The chemical industry in Kenya registered a CAGR of 4.9% in real terms over the period 2013-18, with a market size estimated at US$4.57 billion in the latter year. Despite global fluctuations in crude oil pricing, which is a key raw material for several products in the industry, the rising cost of production, and high dependence on imported products that are affected by exchange rate fluctuations, the industry exhibited a steady performance in the five years ending in 2018, led mainly by plastic in primary forms. In addition, a plethora of policy interventions is proposed to develop and implement tax incentives and waste management initiatives for the various chemical sectors. In 2018, Kenya’s chemical Industry comprised: plastic in primary forms and synthetic rubber (34%), basic chemicals (22.5%), fertilizers and nitrogen compounds (16.2%), photochemical, explosives, and other chemicals (11.4%), household cleaning and personal care products (5.6%), pesticides and other agrochemical products (4.7%), paints and varnishes (3.2%) and artificial fibers (2%). ▪ Growth in the sector was led by rapid growth in paints and varnishes, which registered an estimated CAGR of 5.4% for the period 2013-18.