United Paints MD feted for transformative leadership

United Paints Managing Director Stephen Moche was voted as the Top trusted CEO in this years’ Mizani Africa Awards that recognises leaders in business and politics whom Kenyans hold in esteem.

Having humbly started as a hardware store back in 1997, the MD was feted for implementing strategies that have enabled the firm to start manufacturing premium paint products that most Kenyans can afford.

“Many of the clients we interacted with were telling us they couldn’t use certain paints because they perceived them to be for the high end. Meanwhile, the ‘high end’ who used these paints needed an alternative that was high quality but affordable,” posed Moche.

While receiving the award, the MD reiterated the need for the authorities to implement policies that will encourage local production of goods, ultimately leading to economic growth and creation of jobs.

“The government needs to protect its local business people. We cannot have foreign developers being allowed to import building materials such as paints, which can be sourced locally,” said Moche.

The entrepreneur also emphasised the need to simplify taxation, noting that many traders are not paying taxes, not because they do not want to but because they do not understand how to go about the process.

He further suggested that incentives such as rebates, used commonly in advanced economies such as China, could be used here to boost the competitiveness of local manufacturers.

“When a manufacturer is given tax incentives, they are able to pass on the cost benefit to the consumer, which creates room for more money to flow in the economy,” said Moche.

Favourable policies not only help to increase local revenue, but also forex revenue generation, as through them, manufacturers develop capacity to export the surplus of what they produce.

“We need to start seriously investing in local value addition, to avoid exporting raw materials, only for us to import finished goods at higher prices,” noted Moche.

As net importers, Stephen says that the country is spending a lot of money on importing products which can be manufactured locally, sold locally and the remainder exported.

“Titanium, which is a component used widely in the paints industry, is mined in large quantities in Kwale, but what are we doing to that raw titanium to be able to produce these other products,” posed Moche.

Reducing reliance on imports could also help to solve challenges that the value chain has been grappling with such as the fluctuation of the Kenyan shilling against the US dollar.

“Just the other day, the dollar hit the Sh160 exchange rate and you still have to import products, so what happens then and you still want to sell your products at a competitive price. It is a very delicate balancing act,” explained Moche.

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