Industrialists and key economic stakeholders are calling on the Kenyan government to implement tax reforms and improve infrastructure to foster manufacturing growth and job creation.
During the launch of Lea Premium Maize Flour by New Paleah Millers in Thika, Kiambu County, stakeholders highlighted the manufacturing sector’s potential to drive sustainable economic growth and create thousands of jobs, especially for the youth. Industrialists Joseph Njoroge, Joyce Kiarie, and Douglas Kuria led the calls for a stable policy environment, citing high taxation and poor infrastructure as major impediments to 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.
A key issue raised was the Value Added Tax (VAT) imposed on maize flour production. The stakeholders argued that the tax increases production costs for a basic staple, weakening local competitiveness and burdening consumers.
Murang’a Governor Irungu Kang’ata and Kenya Seed Company Chairperson Wangui Ngirichi, who were also present, echoed these concerns. Governor Kang’ata urged the government to provide tax incentives and ease regulatory burdens on startups and small-scale manufacturers. “Relaxed compliance procedures and pro-business policies can empower local industries to thrive,” he said.
The newly opened flour mill in Thika has already created over 300 jobs, primarily for young people from the Kiandutu informal settlement. Plant managers noted that beyond job creation, the facility represents a broader model of industrial success and community empowerment.
Strategically located in Thika—an emerging industrial hub with strong transport and agricultural linkages—the milling plant is seen as a vote of investor confidence. Thika’s leaders are pushing for its elevation to city status, leveraging its growing industrial base.
“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 Kiarie, director at New Paleah Millers.
Stakeholders hope that with the right policy support, Kenya’s manufacturing sector can become a key pillar of economic transformation.
