This paper traces the evolution of the policy environment in Kenya with specific reference to strategic trade and industrial policies. It examines the role of socio-political and economic institutions in the design and implementation of strategic trade and industrial policies in the country. The assessment is based on literature and detailed interviews with domestic and foreign-owned firms, government ministries and institutions such as manufacturers' associations, retired and currently serving policy-makers, and researchers. The structure and performance of Kenya's manufacturing sector are described, followed by a review of strategic trade and industrial policies in Kenya since independence. The paper also examines the role of different actors in the formulation and implementation of strategic and industrial policies in the country. Finally, conclusions and policy implications are presented.