Kenya’s Textile Sector Pushes Back On Duty-Free Textile Imports
Political leaders are speaking out on behalf of Kenya‘s textile industry and issuing warnings about a government plan to allow duty-free fabric imports.
Lawmakers and manufacturers from 24 of the African nation’s cotton-producing counties have raised fears that such a scheme could derail the sector’s growth amid a renaissance that has seen substantial governmental investment in farmers, gins, mills and manufacturers.
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Last week, Governor Gladys Wanga of Homa Bay and Governor Paul Otuoma of Busia told Kenya’s The Standard newspaper that allowing duty-free textiles into the country could hurt cotton farmers who have already faced a downshift in demand due to fabric factory closures.
“Importing duty-free fabric would erase all the progress we’ve made,” Governor Wanga told the outlet. “It contradicts the bottom-up economic agenda’s focus on creating jobs and empowering farmers.”
“There’s a vast market for cotton,” she added. “Our challenge is to meet the textile industry’s needs, create jobs, and alleviate poverty in our counties.”
Governor Otuoma added that farmers are committed to developing the required raw material supply, but they need the government’s support. He called for services that might help educate them on best farming practices that could lead to greater crop yields.
The Standard reported that Thika Cloth Mills might have to cut jobs due to the growing reliance on foreign imports. “Importing used clothes and fabrics hurts our local industries,” managing director Tejal Dodhia said. “Duty-free fabric leaves farmers and textile workers jobless. We must embrace the ‘Buy Kenya, Build Kenya’ spirit.” The mill is actively engaged in providing farmers with high-quality Bt cotton seeds, which are genetically modified for resistance to bollworm.
Meanwhile, Rivatex managing director Thomas Kipkurgat told the outlet that its new facility is on the verge of completion, with new machinery projected to up capacity and product quality. He encouraged industry stakeholders and farmers to remain a part of the factory’s upstream supply chain, noting that cotton is the group’s most important raw material. “Ninety-five percent of our products are 100-percent cotton. I urge everyone to oppose duty-free fabric imports we can produce ourselves,” he added.
Last January, the Kenyan government committed to investing $1.6 million to revitalize the local textile sector and reopen beleaguered operations like Rivatex as a part of the country’s “Buy Kenya, Build Kenya” initiative. State Department for Industrialization principal secretary Juma Mukhwana pointed to the factory as a success story, saying it had “undergone a significant makeover” and applauding management for “bringing it back to life” and creating jobs for 1,000 locals. Last week, Mukhwana said the government had invested about $30,000 into Rivatex over the past year.
The principal secretary added that the push for the development of local textile manufacturing could have “far-reaching consequences on economy,” with major efforts underway to bring up the cotton industry. The government plans to double cotton production and up prices from 52 shillings ($0.33) per kilo to 72 shillings ($0.45) per kilo to entice farmers. Rivatex alone uses 10,000 bales of cotton each day in its production, with 3,000 of those bales sourced locally. “I urge farmers to plant the crop to reap fully from the sector,” he said.
The government is working to support domestic makers by pouring its own dollars into the sector. “Government agencies are making their garments in our local textile firms as a commitment in promoting Kenya produced products,” he added.
Kenya’s apparel market is estimated to be worth about $5.95 billion in 2024, with a projected annual growth rate of almost 4 percent. Women’s apparel accounts for the largest market segment, accounting for $2.23 billion in market volume.
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