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| United Paints MD Stephen Moche (r) receives award from National Assembly Budget Committee chair and Kiharu MP Ndindi Nyoro (l). |
Kenya’s manufacturers now want the government to fulfil its mandate of supporting local products. United Paints Managing Director Stephen Moche called on President William Ruto’s administration to implement policies that will encourage local production of goods.
Why manufacturers want Ruto’s govt support Speaking during the 2024 Mizani Africa Awards ceremony on Wednesday, December 4, Moche said the move will enable local industry to thrive, ultimately leading to the creation of jobs and growth of the economy. “The government needs to protect its local business people.
We cannot have foreign developers being allowed to import building materials such as paints, which can be sourced locally,” said Moche. Moche, who scooped the Top Trusted CEO of the year award, shared his journey into the manufacturing venture. Having humbly started as a hardware store back in 1997, the MD was feted for implementing strategies that have enabled the firm to begin manufacturing premium paint products that most Kenyans can afford.
“Many of the clients we interacted with were telling us they couldn’t use certain paints because they perceived them to be for the high end. Meanwhile, the ‘high end’ who used these paints needed an alternative that was high quality but affordable,” he said. The award recognises leaders in business and politics whom Kenyans hold in esteem.
Call for simplified taxation The MD also emphasised the need to simplify taxation, noting that many traders are not paying taxes, not because they do not want to but because they do not understand how to go about the process. He further suggested that incentives such as rebates, used commonly in advanced economies such as China, could be used here to boost the competitiveness of local manufacturers.
“When a manufacturer is given tax incentives, they are able to pass on the cost-benefit to the consumer, which creates room for more money to flow in the economy,” said Moche. Favourable policies not only help to increase local revenue but also generate forex revenue, as through them, manufacturers develop the capacity to export the surplus of what they produce.
“We need to start seriously investing in local value addition, to avoid exporting raw materials, only for us to import finished goods at higher prices,” noted Moche. As net importers, Stephen says that the country is spending a lot of money on importing products that can be manufactured and sold locally, with the remainder exported.
“Titanium, which is a component used widely in the paints industry, is mined in large quantities in Kwale, but what are we doing to that raw titanium to be able to produce these other products,” posed Moche. Kenyans to register for SHA: “Muwe mabalozi” Reducing reliance on imports could also help to solve challenges that the value chain has been grappling with such as the fluctuation of the Kenyan shilling against the US dollar.
Ruto’s plans to grow local manufacturing President William Ruto’s administration announced plans to grow local manufacturing by 20% of the Gross Domestic Product (GDP) by 2030 Sector players continue to gear towards the government’s ambition to steer the industry to new heights. In April 2024, Ruto introduced a 50% nighttime electricity tariff cut to support local manufacturing.
by Wycliffe Musalia