Kenya's paint industry seeks tax incentives to boost lead-free paint production

The appeal comes as manufacturers continue investing in the transition from conventional lead-based paints to safer alternatives that comply with international health and environmental standards. Industry players, however, say high production costs driven by expensive raw materials, rising energy prices and an increasingly costly tax environment are slowing the pace of the transition.

Speaking during the Africa Coatings Expo, Hermosa Paints Ltd Product Manager Joel Gathu said Kenya's paint manufacturers had made significant progress in eliminating lead from decorative paints through investments in innovation and cleaner production technologies.

"The industry has made tremendous progress in eliminating lead from decorative paints, but sustaining this transition requires an enabling policy environment," Gathu said.

"Tax incentives would reduce production costs, making locally manufactured lead-free paints more affordable and allowing Kenyan manufacturers to compete fairly against imported products."

The industry's appeal comes amid growing global efforts to phase out hazardous chemicals in building materials. Lead exposure remains a major public health concern, with medical experts linking prolonged exposure to irreversible neurological damage, particularly among children, while painters and construction workers remain among those most at risk.

Manufacturers argue that as Kenya accelerates housing, infrastructure and urban development projects, expanding access to certified lead-free paints should be integrated into the country's broader public health and environmental sustainability agenda.

Industry players say the shift to safer paint formulations has required substantial investment in research and development, product reformulation, quality assurance systems and compliance with international manufacturing standards. At the same time, manufacturers continue to contend with volatile global raw material prices, currency fluctuations and rising operating costs.

According to Gathu, targeted fiscal incentives would not only make lead-free paints more affordable for consumers but also encourage greater investment across the manufacturing value chain.

"An enabling business environment is critical for the continued growth of Kenya's manufacturing sector. Policies that encourage innovation and reduce the cost of doing business will attract investment, stimulate industrial expansion and create more employment opportunities," he said.

Industry stakeholders say the proposed incentives would complement the government's industrialisation agenda under the Bottom-Up Economic Transformation Agenda (BETA), which seeks to expand manufacturing, create jobs and enhance the sector's contribution to economic growth.

They also argue that wider adoption of lead-free paints would strengthen occupational safety, reduce environmental pollution and help lower the long-term healthcare burden associated with lead exposure.

Manufacturers further see opportunities under the African Continental Free Trade Area (AfCFTA), noting that increased production of internationally compliant lead-free paints could position Kenya as a regional manufacturing hub and boost exports to African markets.

Stakeholders maintain that closer collaboration between government, regulators and manufacturers will be essential in accelerating the industry's transition to safer paint products while enhancing the competitiveness of local manufacturers.

They argue that targeted tax incentives would not only support industrial growth but also deliver broader public health and environmental benefits by making safer, high-quality paints more accessible to Kenyan consumers.