Murang’a Governor Irungu Kang’ata has expressed concern that Kenya’s increasing tax and levy demands could stall the country’s industrialisation efforts. Speaking on July 30, 2026, he highlighted that successive governments have not prioritised manufacturing adequately within national economic policies.

Kang’ata noted that despite establishing special economic zones, Kenya has yet to fully realise the industrial growth goals outlined in Vision 2030. He urged policymakers to prioritise sectors that will drive sustainable economic expansion, citing manufacturing as a critical area.

Lessons from Asia and Beyond

Drawing comparisons with countries like South Korea, China, Vietnam, and Bangladesh, Kang’ata pointed out how focused industrial strategies helped these nations transform their economies. He mentioned Bangladesh’s success in developing its garment industry, which created jobs and boosted incomes despite starting from a lower GDP per capita than Kenya around 2005.

Taxation Challenges

While acknowledging recent macroeconomic improvements such as currency stability and higher foreign direct investment under President William Ruto’s administration, Kang’ata identified the current tax regime as a major obstacle for businesses. He highlighted the impact of new and increased taxes, higher NSSF and NHIF contributions, corporate tax rates near 30%, and numerous levies on manufacturers and exporters.

“If this government was truly pro-business and pro-manufacturing, it would consider reducing these costs,” Kang’ata said, calling for targeted corporate tax cuts for manufacturers, especially agro-processors dealing with key exports like avocado and tea. He also cautioned against the proposed tea levy, warning it could negatively affect one of Kenya’s main export sectors and tea-producing regions such as Murang’a.

Industrial Parks and Deregulation

Kang’ata welcomed the development of county-level industrial parks and Murang’a’s initiative to establish a special economic zone, a concept he credited to former Cabinet Secretary Moses Kuria. However, he pointed out funding gaps, including a Ksh2 billion requirement for a power substation, as well as challenges in marketing and official registration under the Special Economic Zones Authority.

He further urged the government to streamline regulatory processes, noting that businesses like hotels face nearly 15 different licences and fees from various agencies including the National Construction Authority, NEMA, county governments, copyright bodies, and tourism authorities.

Manufacturing and Job Creation

Highlighting Kenya’s current economic growth rate of approximately 4.5 to 4.9%, Kang’ata observed that this remains below the 7% annual growth achieved during the Mwai Kibaki era and the level needed to meet Vision 2030 targets. He stressed the lack of visible structural economic transformation and pointed to manufacturing as a key driver for employment, referencing job creation at the Kitengela Export Processing Zone.