Industrialists Call for Tax Reforms and Infrastructure Investment to Boost Manufacturing

Kenyan industrialists and economic leaders are calling on the government to implement urgent tax reforms and enhance infrastructure development to unlock the full potential of the country’s manufacturing sector.

Speaking during the launch of Lea Premium Maize Flour by New Paleah Millers in Thika, Kiambu County, the stakeholders emphasized that manufacturing could be a key driver of job creation and long-term economic sustainability, especially for the country’s growing youth population.

Led by industrialists Joseph Njoroge, Joyce Kiarie, and Douglas Kuria, the group raised concerns over high taxation and inadequate infrastructure, which they argue continue to hinder industrial expansion. “We are urging the government to foster a stable policy framework and invest in infrastructure that will support long-term industrialization,” said Njoroge. “Such efforts will help transform the country into a robust manufacturing economy.”

The industrialists singled out Value Added Tax (VAT) on maize flour production, a staple food in Kenya, as particularly burdensome, noting that it raises production costs and diminishes competitiveness in the local market.

Their sentiments were echoed by Murang’a Governor Irungu Kang’ata and Kenya Seed Company Chairperson Wangui Ngirichi, both of whom attended the launch and advocated for business-friendly regulations. Governor Kang’ata called for reduced regulatory pressure on manufacturers, urging the government to introduce tax incentives for startups and simplify compliance procedures to stimulate industrial growth.

The newly opened New Paleah Millers plant has already employed over 300 youth, mainly from the Kiandutu informal settlement, and is being hailed as a model for industrial success and community development. Located strategically in Thika, an emerging industrial hub with access to both agricultural zones and key transport routes, the facility is seen as a symbol of renewed investor confidence in the region.

“Thika is the heart of business and continues to grow,” said Kiarie. “We are committed to working with the local community to uplift this area.”

The push for Thika’s elevation to city status is gaining momentum, buoyed by such private sector investments that underscore the town’s growing importance as a manufacturing and commercial centre.

Written By Rodney Mbua