Industrialists urge tax reforms and infrastructure boost to spur manufacturing growth

The Kenyan government is facing renewed calls from industrialists and economic stakeholders to establish a more conducive political and economic climate to spur industrial growth and job creation.

Speaking at the official launch of Lea Premium Maize Flour by New Paleah Millers in Thika, Kiambu County, the stakeholders underscored the transformative potential of Kenya’s manufacturing sector, citing its capacity to generate large-scale employment—particularly for the youth—and anchor long-term economic sustainability.

Led by industrialists Joseph Njoroge, Joyce Kiarie, and Douglas Kuria, the group urged the government to address high taxation and infrastructure gaps, which they say are stifling industrial expansion.

“We are urging the government to foster a stable policy framework and invest in infrastructure that will support long-term industrialization. Such efforts will help transform the country into a robust manufacturing economy,” said Njoroge.

They singled out the Value Added Tax (VAT) on maize flour production—a staple food for most Kenyan households—as a key concern, arguing it increases production costs and limits competitiveness in the local market.

Their concerns were echoed by Murang’a Governor Irungu Kang’ata and Kenya Seed Company Chairperson Wangui Ngirichi, who attended the launch. Both leaders advocated for business-friendly regulations and a review of current tax policies to create a more supportive environment for manufacturers.

Governor Kang’ata emphasized the need to ease regulatory pressures on the industrial sector. “We continue to urge the government to revise regulatory frameworks that are perceived to be stifling growth among manufacturers. Provision of tax incentives for startups and small-scale industries, as well as relaxed compliance procedures, can make it easier for businesses to scale,” he said.

The newly commissioned flour milling plant has already provided employment to more than 300 young people, mainly from the nearby Kiandutu informal settlement. Plant managers say the facility is not only a model of industrial success but also a catalyst for community upliftment and economic empowerment.

Located strategically in Thika—an emerging industrial hub with access to farmers and key transport networks—the plant’s presence is seen as a vote of investor confidence in the region, which is pushing for elevation to city status.

“Thika is the heart of business and continues to grow. We have a slum behind us and we are committed to working with them to uplift this area,” said Joyce Kiarie, director at New Paleah Millers.