Stephen Moche, the Managing Director of United Paints, has been recognized as the Top Trusted CEO at this year’s Mizani Africa Awards. The awards celebrate distinguished leaders in business and politics who inspire trust and admiration among Kenyans.
Starting from humble beginnings as a hardware store in 1997, Moche has spearheaded United Paints’ evolution into a premier manufacturer of high-quality, affordable paint products.
“Many clients told us they couldn’t use certain paints because they were perceived as exclusive to the high-end market. At the same time, the high-end customers were looking for equally high-quality but more affordable options,” Moche shared.
Advocating for Local Production
While accepting the award, Moche emphasized the importance of policies that promote local manufacturing. He urged the government to protect local businesses from competition with imported goods.
“We cannot allow foreign developers to import building materials, like paints, that are already being produced locally,” he stated.
Moche also called for reforms in the taxation system to support small and medium enterprises. He noted that many traders fail to pay taxes not out of defiance but due to the system’s complexity.
Incentives for Growth
Drawing inspiration from advanced economies like China, Moche suggested introducing tax incentives such as rebates to enhance local manufacturers’ competitiveness.
“When manufacturers receive tax incentives, they can pass the cost savings to consumers. This stimulates economic activity and keeps more money circulating within the local economy,” he explained.
Moche further highlighted that favorable policies could help manufacturers develop export capacity, reducing the reliance on raw material exports and fostering local value addition.
“We must invest in value addition. Exporting raw materials only to import finished goods at higher prices is counterproductive,” he remarked.
Reducing Reliance on Imports
As a net importer, Kenya spends substantial amounts on products that could be manufactured locally. Moche cited titanium, a vital component in the paint industry, as an example.
“Titanium is mined in large quantities in Kwale, but what are we doing with it? Why are we exporting it as raw material instead of using it to produce finished goods?” he questioned.
He also warned about the challenges of fluctuating exchange rates, which disrupt the value chain.
“Recently, the dollar hit an exchange rate of Sh160, yet manufacturers still need to import raw materials. Balancing competitive pricing in such conditions is a delicate act,” Moche explained.
A Vision for Growth : Moche’s leadership at United Paints continues to inspire confidence in local manufacturing and economic self-reliance. His call for policy reforms and value addition underscores a vision where Kenyan industries thrive, creating jobs and fostering economic growth.
