Kenya’s industrial titans have drawn a line in the sand, warning the government that the erratic annual reshuffling of tax policies is sabotaging the nation’s economic future and driving investors to stable neighbors.

The launch of the Manufacturing Priority Agenda (MPA) 2026 was less a ceremony and more a crisis meeting. The Kenya Association of Manufacturers (KAM) has explicitly accused the Treasury’s unpredictable fiscal regime of turning long-term investment into a game of Russian roulette. With tax codes changing with every budget cycle, businesses are paralyzed, unable to plan beyond the current financial year.

The Cost of Unpredictability

Hitesh Mediratta, the KAM Board Vice Chair, didn't mince words. "Capital is a coward," he noted, explaining that investors are fleeing to markets where the rules of the game don't change halftime. The sector is demanding a fixed tax structure for at least three years to allow for meaningful strategic planning.

• The Export Drain: Frequent changes in export levies and VAT refund delays are rendering Kenyan goods uncompetitive in the East African Community (EAC) and the wider AfCFTA market.
• The Job Hemorrhage: Manufacturing’s contribution to GDP has stagnated at 7.3%, a far cry from the Vision 2030 goal of 15%, directly impacting job creation for millions of youth.

A Plea to the State

Principal Secretary for MSMEs Development, Susan Mang'eni, acknowledged the friction but emphasized the government's need for revenue. However, the industry’s counter-argument is simple: you cannot tax a corpse. By suffocating manufacturers with fiscal uncertainty, the state risks killing the very goose that lays the golden egg.

The message from the factory floors of Industrial Area is clear: Give us stability, or watch the "Made in Kenya" brand wither away. The ball is now firmly in the Treasury’s court.