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Raw Materials
- Industries are located near sources of raw materials to reduce transportation costs e.g. sugar milling factories in sugar growing areas, mostly in urban areas near airports and oil refineries at the coast since oil is bulky and expensive to transport inland
- They are also established where there is a steady source of raw materials in order for them to be economically viable e.g. oil refineries at the coast
Power
- They are located near main power supply pints to reduce the cost of transmitting power e.g. those in Jinja town near Owen falls dam.
Transport and Communication
- They are located where transportation system is well established to ensure efficient and quick transportation of raw materials to industries and finished goods to the market e.g. in urban centres.
- They are located where there is efficient communication so as to stay in touch with their suppliers and their consumers.
- Well developed communication systems also lower the transport cost.
Market
- They are located where buyers of products are available or in areas with dense population to make their operation to be economically viable since they are established for commercial purpose to make a profit e.g. in urban areas, Kenya highlands, lake region and coastal strip.
Location near markets is also due to the nature of goods e.g. perishable goods have to be consumed before they go bad e.g. bread and daily products. Industries making fragile goods are located near markets to prevent the high risk of breakage during transportation e.g. glass, bricks and roofing tiles.
Labour
- Labour intensive industries are located in densely populated areas where there is adequate and cheap labour to reduce production costs.
- Also so as to reduce the cost of transporting and housing workers.
- A country with skilled manpower has faster industrial growth than that without which are forced to depend on expatriates who are costly to hire and maintain which lowers the profits of such industries
Industries also require skilled manpower and management skills to ensure maximum output and low production costs.
Water Supply
- Some are located near sources of water such as large permanent rivers and lakes to provide water for processing raw materials e.g. coffee pulping, sugar milling e.g. Mumias near R. Nzoia, Sony near R. Migori and Chemilil near R. Nyando.
Government Policies
- Decentralisation of industries
or encouraging by providing incentives location of industries from urban to rural areas.
Incentives
1. Tax exemptions
2. Protection from foreign competition.
gideon1 answered the question on October 4, 2017 at 04:55
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