The Kenyan government has been urged to create a more conducive political and economic environment to support industrial growth.

Industrialists and economic stakeholders noted the importance of a stable and business-friendly environment in driving national development.

Speaking during the launch of Lea Premium Maize Flour by New Paleah Millers in Thika, Kiambu County, the stakeholders highlighted the importance of a stable, business-friendly climate to unlock the manufacturing sector’s potential, especially in creating employment for youth and driving long-term economic sustainability.

Led by industrialists Joseph Njoroge, Joyce Kiarie, and Douglas Kuria, the group urged the government to lower taxes and invest in infrastructure to enhance logistical operations and support industrialization.

“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,” stated Njoroge.

They also voiced concern over the current tax regime, particularly the Value Added Tax (VAT) imposed on maize flour production, a staple food for most households, arguing that it raises the cost of living and undermines local manufacturing competitiveness.

Murang’a Governor Irungu Kang’ata and Kenya Seed Company chairperson Wangui Ngirichi, who attended the event, called for enactment of friendly policies and taxes to facilitate business growth in the country.

Kang’ata urged the government to ease regulations that, he said, are stifling manufacturing growth.

“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 for instance, as well as relaxed compliance procedures can make it easier for businesses to scale,” said Kang’ata.

According to the plant managers, the new flour mill has already created employment for over 300 youth, particularly from the densely populated Kiandutu informal settlement and is seen as a model for how industry can uplift communities and offer meaningful livelihoods.

They noted that the plant was established in Thika, a strategic location that has become an industrial hub with proximity to maize farmers and access to reliable infrastructure.

Its entry into the local flour market reflects growing investor confidence in Thika, a town positioning itself 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, a director at New Paleah Millers.

A section of youths who have already secured jobs expressed optimism that with the new opportunities, crimes at the informal settlements in Thika will go down.

“With more young people now gainfully employed, this new plant is contributing to social stability in addition to economic development,” Alice Waithera, a new employee noted.