Nairobi, July 6 -- A big chunk of the country's installed steel production capacity remains idle despite rising demand driven by a construction boom, fuelled by the government's affordable housing programme, manufacturers said, highlighting the challenges facing local manufacturers even after years of trade protection.

The Kenya Association of Manufacturers (KAM) says local steel mills are operating at just 36 percent of their installed capacity of 4.2 million tonnes, leaving nearly two-thirds of the country's production potential unutilised.

Speaking during the opening of the East African Steel Summit in Nairobi, KAM Chief Executive Tobias Alando said Kenya's steel industry has evolved from manufacturing simple products into a diversif...