Kenya’s Apparel & Textile Industry i

Copyright 2005

Export Processing Zones Authority

EPZA Administration Building
Athi River EPZ, Viwanda Road
Off Nairobi - Namanga Highway
P.O Box 50563, 00200 Nairobi
Kenya
Tel: 254 45 26421-6
Fax: 254 45 26427
Web: www.epzakenya.com
Email: [email protected]

For more information contact:

Evelyn Noah
Promotion Executive
Export Processing Zones Authority
EPZA Administration Building
Athi River EPZ, Viwanda Road
Off Nairobi - Namanga Highway
P.O Box 50563, 00200 Nairobi
Kenya
Tel: 254 45 26421-6
Fax: 254 45 26427
Email: [email protected]

Margaret Waithaka
Manager, New Investments Department
Export Processing Zones Authority
EPZA Administration Building
Athi River EPZ, Viwanda Road
Off Nairobi - Namanga Highway
P.O Box 50563, 00200 Nairobi
Kenya
Tel: 254 45 26421-6
Fax: 254 45 26427
Email: [email protected]

The information provided on this report is intended to provide general information to the
investors and every effort has been taken to ensure that the information is accurate.

All the information on this report is the property of Export Processing Zones Authority –
Kenya. Any part from the report may be reprinted or copied in their entirety without
permission provided the source is acknowledged.

This report was prepared by:

PKF Consulting Ltd International Research Network

Kalamu House, Waiyaki Way 4th Floor, Corner Plaza, Westlands
P.O. Box. 47323, 00100 Nairobi, Kenya P.O. Box. 11445, 00400 Nairobi, Kenya
Tel: (254-20) 4446616-9 Tel: (254-20) 3741342
Website: www.klsa.net Website: www.irn.co.ke

Kenya’s Apparel & Textile Industry ii

 TABLE OF CONTENTS

1 INDUSTRY OVERVIEW ...................................................................... 1

2 INDUSTRY STRUCTURE AND PRODUCTION.................................. 2
2.1 COTTON GROWING AND GINNING ........................................... 2
2.2 APPAREL, YARN AND FABRIC MANUFACTURE ...................... 5
2.3 OTHER TEXTILE PRODUCTION................................................. 6
3 MARKET CONDITIONS ...................................................................... 7
4 LEGAL AND REGULATORY FRAMEWORK ................................... 14
5 REASONS TO INVEST IN KENYA ................................................... 14
6 INVESTMENT OPPORTUNITIES...................................................... 16
7 USEFUL CONTACTS........................................................................ 16
8 SOURCES OF INFORMATION & GLOSSARY ................................ 17
9 APPENDICES.................................................................................... 18

List of Charts Page

Chart 1: Area of Cotton by Provinces (Ha) : 2001-2003 3

Chart 2: Production of Seed Cotton (Metric Tonnes) by
Province 2001-2003 3
Chart 3: Volumes of Exports (Volume in Tonnes) 7
Chart 4: Value of Exports (Value in KShs. Million) 8
Chart 5: Exports to COMESA and EAC combined 10
Chart 6: Value of Exports (Value in US $ Millions) 12

List of Tables

Table 1: Installed ginning capacity in the country per province 5

Table 2: Wool sheep population & distribution trend 6
Table 3: Domestic textile and apparel market 7
Table 4: Principal domestic exports to EAC (Value in KShs ‘000) 9
Table 5: Principal domestic exports to COMESA (Value in Kshs ‘000) 10
Table 6: Share of AGOA trade by sub-Saharan countries 12
Table 7: EPZ garment manufacturing enterprises, employment,
Investment and exports 2000-2003 13

Kenya’s Apparel & Textile Industry iii

Abbreviations
ƒ AGOA: African Growth and Opportunity Act
ƒ WTO: World Trade Organisation
ƒ US: United States of America
ƒ EU: European Union
ƒ MUB: Manufacturing Under Bond
ƒ EPZ: Export Processing Zone
ƒ EEC: European Economic Community
ƒ SSA: Sub Saharan Africa
ƒ DANIDA: Danish International Development Agency
ƒ GDP: Gross Domestic Product
ƒ KICOMI: Kisumu Cotton Mills
ƒ RIVATEX: Rift Valley Textiles
ƒ EAC: East African Community
ƒ COMESA: Common Market for Eastern and Southern Africa
ƒ GSP: Generalised System of Preferences
ƒ ACP: African, Caribbean & Pacific
ƒ EPC: Export Promotion Council
ƒ KAMEA: Kenya Apparel Manufacturers & Exporters Association
ƒ KIB: Kenya Irrigation Board
ƒ ACT: Agreement on Clothing & Textiles
ƒ KAM: Kenya Association of Manufacturers

Annual Average Exchange Rates (Kshs to US$)

Year Rate
1999 70.3
2000 76.2
2001 78.6
2002 78.4
2003 75.9
2004 80.0 (As at 31st August 2004)

For latest rates click on http://www.centralbank.go.ke/cbk/FXrates/archives.html

Kenya’s Apparel & Textile Industry iv

1 Industry overview
Agriculture is the base for economic growth, employment creation and foreign exchange
earnings in Kenya. The sector accounts for about 24% of Kenya’s GDP, contributes more
than 50% of the country’s export earnings and employs about 75% of the population.

Cotton production offers the greatest potential for increased employment, poverty
reduction, rural development and generation of increased incomes in arid and semi-arid
areas of the country. The sub-sector has been identified as one that could help bring rapid
economic development in the country. It has therefore been classified as a core industry
by the Kenyan government.

Cotton production was introduced in Kenya in the 1900s by the colonial administration.
However, it was not until the early 1960s that the crop was introduced in many parts of the
country, being encouraged in areas with low rainfall and therefore unsuitable for other
cash crops. Currently the crop is grown in Nyanza, Western, Coast, Central, Eastern and
Rift Valley provinces, largely under rain fed conditions. Cotton is also planted on irrigated
land and the Government has made an effort to boost production of cotton by setting up
various irrigation schemes in different arid and semi-arid parts of the country.

Kenya’s cotton sector was still dominated by private colonial ginners till independence in
1963. Immediately after independence Kenya adopted an import substitution policy that
ensured a backward integration of textile mills. Between that time and the end of 1990 the
Government systematically introduced controls into the sector: it helped cooperative
societies buy ginneries from the colonialists, controlled marketing margins, fixed producer
prices and invested heavily in textile mills. The Government protected the local industry by
imposing a 100% duty on imported goods, which ensured the rapid growth of the local
textile industry with an average production capacity of over 70%. The industry also
received substantial assistance from the Government and donor agencies especially in the
1980s.

In the early 80’s the textile industry was the leading manufacturing activity in Kenya, both
in terms of size and employment. The industry was employing over 200,000 farming
households and about 30% of the labour force in the national manufacturing sector.
However the sub-sector started declining in the mid-1980s until the 1990s. There was the
dumping of used clothes locally known as “mitumba” which originally was meant for the
troubled Great Lakes region but somehow ended up in the local market retailing at very
low prices. This led to the collapse of the local textile industry in the early 1990s.

Since the liberalization of the economy in 1990, the influx of textile goods into Kenya also
became a major problem that reduced the average capacity utilization in the textile mills to
about 50%. The textile sector was actually once the fifth largest foreign exchange earner in
Kenya, but dropped to a very small contribution of the Gross Domestic Product (GDP)
from mid and late 90s. However, data available for the last 5 years indicates that the
sector is on its way to recovery largely due to AGOA and increased Government support.

The enormous market prospects presented by the African Growth and Opportunity Act
(AGOA) of 2000 and the African, Caribbean and Pacific - European Union (ACP-EU)
Cotonou Agreement have rekindled interest in the industry. Indeed, since Kenya qualified
for AGOA, its exports to the US have expanded remarkably and so has investment in this
sector. Kenya’s textile exports to the US increased from US$ 39.5 million in 1999 to US$
277 million in 2004. Total investment in the sector rose from Kshs. 1.2 billion to KShs. 9.7
billion, a 41% increase while jobs generated increased from about 26,000 in year 2002 to
37,000 in 2003, but dropped to 32,000 by end of 2004.

Existing textile and apparel firms in the country produce a large variety of products.
Spinning firms produce yarn (including industrial) and sewing thread while integrated mills
produce a wide variety of products including yarn, fabrics (knitted and woven), canvas,
school and traveling bags, blankets, sweaters, shawls, uniforms, towels, baby nappies and

Kenya’s Apparel & Textile Industry 1

knitted garments. Garment manufacturers on the other hand, produce various types of
garments both for the local market and for export. About 46% of the garment
manufacturers produce men’s wear while the others produce woven chemise and robes,
pants, Kaunda suits (for men), knitted and woven garments.

The textile industry has made a sizeable contribution to income generation in rural areas
by providing a market for cotton. The cotton sub-sector has significant linkages with not
only the textile processing and manufacturing industry but also with manufacturers of
soaps and detergents, animal feeds, chemicals, fats and oils. These direct linkages with
the textile processing and manufacturing firms are particularly important for the exploitation
of new market opportunities presented by AGOA, European Union and other markets
where Kenya can export the cotton products.

Investments in growing and ginning of cotton, spinning and weaving operations, in addition
to those in production of apparel and other products are assured of ready local, regional
and international markets. Attractive investment incentives and production advantages are
found in Kenya.

2 Industry structure and production

The textile industry in Kenya is relatively diverse and can be divided broadly into four main
areas of production as follows:

ƒ Cotton growing and ginning

ƒ Yarn and thread production
ƒ Fabric manufacture
ƒ Apparel manufacture

2.1 Cotton growing and ginning

Cotton in Kenya is mainly grown by small-scale farmers in marginal and arid areas, on
small land holdings averaging about 1 hectare. It is estimated that Kenya has 140,000
small-scale cotton farmers1 compared with over 200,000 in the mid-1980s when the
industry was at its peak. The Cotton Board of Kenya estimates that countrywide, 350,000
hectares is suitable for rain-fed cotton production with the potential to produce about
260,000 bales of lint annually, and 34,500 hectares for irrigated cotton with the potential to
produce 108,000 bales of lint annually. However, only about 25,000 hectares is currently
under the crop2, and the total annual lint production stands at only about 20,000 bales
(2003). The acreage for the last three years is detailed in chart 1 below.

1
Government of Kenya
2
Ministry of Agriculture - Crop Development Division 2003

Kenya’s Apparel & Textile Industry 2

Chart 1: Area of cotton by provinces (Ha): 2001-2003

Area (Ha) of cotton by provinces 2001 - 2003

30,000

20,000
Area under Ha

10,000

0
Rift
Total Central Western Nyanza Eastern Coast
Valley
2001 24430 991 300 2035 6724 10370 4010
2002 20171 894 362 543 5850 9054 3460
2003 24955 244 310 1957 5724 14058 2762

Province

Source: Crop Development Division – Ministry of Agriculture Annual Report 2003

There was a slight rise in total cotton acreage from 24,430 ha in year 2001 to 24,955 ha in
2003 according to the 2003 annual report from the Ministry of Agriculture’s Crop
Development Division. The average production per hectare is currently 250 kg/ha but its
possible to raise the productivity level to around 600 kg/ha as confirmed by research
conducted by Kenya Agricultural Research Institute (KARI) in the late 90s. In terms of
seed cotton quantity, there was 8% decline from 19,314 metric tonnes in 2001 to 17,776
metric tonnes of seed cotton in 2003.

Chart 2: Production of Seed Cotton (Metric Tonnes) by Province 2001-2003

Production of seed cotton (MT) by province 2001- 2003

25,000
20,000
Metric tonnes

15,000
10,000
5,000
0
Rift
Total Central Western Nyanza Eastern Coast
Valley
2001 19314 1083 150 1400 3860 8272 4549
2002 12808 448 216 585 1916 6324 3319
2003 17776 233 205 1460 3860 8393 3625

Province

Source: Crop Development Division – Ministry of Agriculture Annual Report 2003

Kenya’s Apparel & Textile Industry 3

Since cotton was introduced into the country in 1900, the strain that was initially grown
was an American variety whose lint has fibres measuring 25.0-29.0 millimeters long, which
was classified as being of medium staple length. Currently however, the dominant varieties
grown in Kenya are:

ƒ HART 89M – Central & Eastern Provinces

ƒ West KSA 81M – Western & Nyanza Provinces

Irrigated cotton was produced mainly in Hola and Bura (Tana River District) and parts of
Kerio valley. The Hola irrigation scheme was started in 1956, and the Bura one in 1981/82.
By 1987/88, the government-run Hola and Bura irrigation schemes accounted for 39% of
the national lint production. The Hola scheme collapsed in 1991/92 after the Tana River
changed its course. Cotton is also grown in the Perkera irrigation scheme in Baringo
District. Irrigation does allow for production of two crops per annum hence it reduces and
spreads production costs.

There is however big potential for growing of more cotton as the country has about 2.04
million hectares of land suitable for cotton cultivation with the bulk of it in Coast province
followed by Eastern & Central, Western & Nyanza and Rift Valley provinces respectively
as shown below:

ƒ Coast Province 914,000 Hectares

ƒ Eastern & Central 670,000 Hectares
ƒ Western & Nyanza 370,000 Hectares
ƒ Rift Valley 89,000 Hectares

At the moment the potential areas targeted for cotton growing include:

ƒ Nyanza Province
- Rangwe and Asego (Homa Bay District)
- Kendu-Bay, Kobama & Ndhiwa (Rachuonyo District)
- Suba & Bondo (Rarienda)
- Kibos- Kisumu
- Nyando & Siaya
ƒ Western Province
- Busia, Butere Mumias
- Bungoma District
ƒ Rift Valley Province
- Baringo, Keiyo / Marakwet, Iten, Koibatek, and parts of Turkana, West
Pokot and Marigat.
ƒ Eastern Province
- Makueni & Kitui Districts, and parts of Meru
ƒ Central
- Mwea area of Kirinyaga District
ƒ Coast Province
- Lamu, Tana River and Taita Taveta Districts.

Cotton Ginning

Ginning separates seed cotton into lint and cottonseed. Ginneries are a focal point in the
cotton industry, and their location, efficiency and organization are critical to it.

Ginning, like husbandry practice, harvesting or storage, is an important determinant of the

spinning quality of cotton fibre. The ginner’s objective is to produce lint of satisfactory
quality and to gin the cotton with minimum effect on fibre spinning quality. The most
important measures of that quality include strength, short fibre content, length uniformity,
maturity, fineness, trash content, colour, seed coat fragment and stickiness. These factors
affect the market price of cotton.

Kenya’s Apparel & Textile Industry 4

There are 24 ginneries in the country with an installed capacity of approximately 140,000
bales annually. But the utilised capacity is a meagre 20,000 bales (about 14%), meaning
that if the cotton production capacity were increased by 400% the ginneries would still be
able to handle the production.

Out of the 24 registered ginneries, some have been leased to the private sector. In total
there are only about 10 ginneries that are working currently. Some of the ginneries like
Hola ginnery ceased operation as a result of the collapse of the Hola Irrigation scheme,
after River Tana which was supplying water changed course and left the pumps dry. Some
of the major ginneries that are privately owned include Kibos & Nyanza Ginneries in
Nyanza Province and Tharaka Ginnery in Eastern Province.

Table 1: Installed Ginning Capacity in the Country per Province

Installed Capacity Capacity Utilisation

Region (Bales per Annum) (%)
Eastern / Central Province 43,375 24%
Western Province 36,572 28%
Coast Province 31,589 62%
Nyanza Province 23,390 25%
Rift Valley Province 4,253 24%
Total Ginning Capacity In Kenya 139,179 Average 32.6%
Source: Export Processing Zones Authority 2002

The lint processed in the local ginneries is marketed to the textile industries for fibre while
the seeds are returned to farmers for planting or are used for animal feed manufacturing
and oil extraction.

Appendix 5 contains a list of all cotton ginners in Kenya.

2.2 Apparel, yarn and fabric manufacture

Cotton lint goes through spinning to produce yarn. The yarn is then weaved or knitted to
produce different types of fabric. Spinning operations in Kenya are all large scale and
locally owned. The spinning firms produce yarn, industrial yarn, and sewing thread while
integrated mills produce a wide variety of products including yarn, fabrics (knitted and
woven), canvas, sweaters, shawls etc.

Before the decline of the textile industry in the early 1990s, there were 52 textile mills
devoted to fabric and yarn production and over 110 large-scale garment manufacturers
registered with the Registrar of Industries. The mills had an installed combined capacity of
115.0 million square meters of fabric whilst the garment manufacturing sector had a
combined installed capacity to process fabric into garments equivalent to 85% of the total
national demand i.e. (141.3 million square meters). It is estimated that the total annual
fabric requirement is at least 225.0 million square meters.

The number of garment manufacturers/exporters currently stands at 55, with 29 under the
MUB scheme and 26 firms under the EPZ program. The actual number of small-scale
garment manufacturing units though has never been documented.

The range of apparel products for both local and export market include the following:

• Domestic market: trousers, uniforms, overalls, vests, inner garments

• Export market: jeans, trousers/pants, shorts, shirts, nightwear, blouses and
dresses.

Kenya’s Apparel & Textile Industry 5

Appendices 1 and 2 contain lists of all garment manufacturers under the EPZ and MUB
programs respectively while Appendix 3 contains a list of textile mills in Kenya.

2.3 Other textile production

2.3.1 Wool production

The wool industry in Kenya is relatively small. The background of the industry dates back
to the 1920’s when Lord Delamere did the first importation of wool sheep. Most important
of the wool sheep, mainly from New Zealand, Britain, Australia and South Africa, were
done by the settler community. The population continued to grow. Today the leading wool
producing districts include Nyandarua, Narok, Nakuru, Elgeyo Marakwet, West Pokot and
Meru Central (mostly Timau division).

The country has sheep totaling 7,855,911 heads but the population for wool sheep is
about 13% of the total population standing at 1,010,771 heads of sheep (year 2001),
which is a 30% growth from the year 1999, showing there was a positive growth in the
wool industry. Rift Valley province led with 713,791 heads of wool sheep while Central
Province had 247,379 as tabulated below.

Table 2: Wool sheep population and distribution trend - 2002

Province 1999 2000 (2001)

Rift Valley 452,905 564,870 713,791
Central 256,140 252,690 247,379
Eastern Province 64,373 53,360 46,620
Nairobi 2,659 2,997 2,981
Total 776,077 873,917 1,010,771
Source: Livestock Production Department – Ministry of Livestock and Fisheries Development 2002

In the 1960s and early 1970s, large-scale farms in high potential areas did wool
production. From 1970s, however, most of these farms were sub-divided into small-scale
farms due to human population pressure. Today small-scale farmers in the high potential
areas keeping small flocks of wool sheep do bulk of the wool production.

The major wool breeds in Kenya include Merino, Corriedale, and Ramney Marsh. Other
breeds include Hampshire Down and cross breeds between two or more of these breeds.
There are also crossbreeds between the pure breed, wool breeds and the indigenous
sheep.

There is a lot of inbreeding in the wool flocks due to shortage of breeding stock. This is
attributed to lack of serious wool sheep breeders in the country.

The mean yield of wool per animal per year is 4.5Kg. The mean yield for Kenyan sheep is
only 2.18 Kg per year. There is big potential to increase both the wool yield per animal and
the overall population of the animals. The wool is processed locally or exported to world
markets. The main market for raw wool is United Kingdom.

2.3.2 Synthetic raw materials

All the synthetic materials are imported. These include dyes and polyester (imported as
granules), which has to be heated and then extruded into fine threads (filaments) for
synthetic yarn production. The average annual imports of synthetic fibre for years between
1998 to 2002 is about 13,600 tonnes.

Kenya’s Apparel & Textile Industry 6

3 Market conditions

3.1 Local market

Local textile manufacturers supply only 45% of the Kenyan textile market requirements
while imported new and used clothes account for about 37% of the market, as shown in
table 10 below. Demand for textile products in the country is estimated to be growing at
3.8% annually.

Currently there are 35 textile mills in the country. If they were to operate at their installed
capacity, they would create demand for cotton lint of 60,000 bales per annum, on top of
the current annual demand of 120,000 bales to be able to meet the increasing demand for
the increasing Kenyan population.

Table 3: Domestic textile and apparel market

Item Fabric equivalent Market share (%)

(Million Sq. Metres)
Imported fabric 32.0 17.5
Imported new clothes 38.0 20.8
Imported used clothes 30.0 16.4
Local manufactured items 83.0 45.3
Total 183.0 100.0
Source: Paper on cotton /textile sub-sector – Ministry of Trade and Industry (March 2004)

3.2 International markets

The main exports in the textile sector are textile yarn, fabrics and made up textiles, with
the volume totaling 1854 tonnes in 2003 down from 2192 tonnes exported in 2002,
signifying an 18% drop in exports. Only a small amount of cotton is exported raw.

Export trends for the textile and apparel industry are detailed in chart 3 below:

Chart 3: Volumes of Exports (Volume in Tonnes)

3000

2500

2000
Tonnes

1500

1000

500

0
1999 2000 2001 2002 2003
Raw-cotton 54 147 9 1183 -
Textile yarn, fabrics, 1361 2814 2142 2192 1854
made up textiles
Raw-wool 596 1174 1188 1532 -
Year

Source: Statistical Abstract 2003 & Economic Abstract 2004 by Central Bureau of Statistics

Kenya’s Apparel & Textile Industry 7

Chart 4: Value of Exports (Value in Kshs. Million)

2500

2000

1500
KShs.

1000

500

0
1999 2000 2001 2002
Raw-cotton 4.5 39 1.12 82.6
Textile yarn, fabrics, 737 1986.7 1915.4 1963.4
made up textiles
Raw-wool 34.3 72.3 83.2 0.11
Year

Source: Statistical Abstract 2003, Central Bureau of Statistics

Textile exports from Kenya enjoy preferential access to regional and world markets under
a number of agreements/arrangements:

1. East African Community (EAC)

The East African Community (EAC) is the regional intergovernmental organisation of the
Republics of Kenya, Uganda and the United Republic of Tanzania with its headquarters in
Arusha, Tanzania. EAC has a combined population of nearly 90 million people with a
combined Gross Domestic Product (GDP) of $25 billion.
The EAC aims at widening and deepening co-operation among the partner states in,
among others, political, economic and social fields for their mutual benefit. With a Customs
Union established and signed by the three partner states, trade is considered to rise even
further. Currently the community has adopted three-band common external tariff regime
namely, zero percent for capital goods and raw materials, 10 per cent for semi-processed
goods and 25 per cent for finished products.

The Customs Union will definitely spawn a wider market for Kenya's manufacturing sector.
Under EAC, Kenyan exports to the sub-region have risen from Ksh.1.9 billion ($24 million)
in 1990 to Ksh.45.5 billion ($583 million) in 2002, or from eight to 27 per cent.
Kenya’s’ textile and apparel exports to her two partners in the community for the year 2003
was Ksh.904.85 millions as tabulated in table 4 below.

Kenya’s Apparel & Textile Industry 8

Table 4: Principal Domestic Exports to EAC (Value in Kshs ‘000)

Commodity Textile Yarn Fabrics, Woven Made up Articles

or Made
Tanzania 140,135 180,726 135,391
Uganda 122,293 39,796 286,509
Total 262,428 220,522 421,900
Source: Statistical Abstract 2003 by Central Bureau of Statistics

Compared with their respective population, Uganda is importing more textile related goods
than Tanzania. Kenya also imports cotton, yarns and fabric from Uganda and Tanzania.

2. Common Market for Eastern and Southern African (COMESA)

COMESA (as defined by its Treaty) was established 'as an organization of free
independent sovereign states which have agreed to co-operate in developing their natural
and human resources for the good of all their people' and as such it has a wide-ranging
series of objectives which necessarily include in its priorities the promotion of peace and
security in the region. However, due to COMESA's economic history and background, its
main focus is on the formation of a large economic and trading unit that is capable of
overcoming some of the barriers that are faced by individual states.

COMESA's current strategy can thus be summed up in the phrase 'economic prosperity
through regional integration'. With its 20 member states, population of over 385 million and
annual import bill of around US$32 billion, COMESA forms a major market place for both
internal and external trading. Its area is impressive on the map of the African Continent
and its achievements to date have been significant. Member countries of this group enjoy
preferential tariff treatment for their imports and exports. Within the COMESA region,
Kenya’s textile industrial base is one of the best developed.

Tariff structure within COMESA can broadly be divided into two:

i. General tariff for COMESA

ii. Free Trade Area (FTA)

General tariffs adhere to the general terms of trade by COMESA, while the FTA has
abolished tariffs for goods originating from their member countries; the FTA has not only
gotten rid of customs tariffs but has also applied the relaxation and eventual elimination of
quantitative restrictions and other non-tariff barriers.

Kenya is a member of the FTA within COMESA. Kenyan textile and apparel exports to
COMESA3 for the year 2003 totaled KShs. 550,441,000. Democratic Republic of Congo
(DRC) led with total imports for the year 2003 totaling Kshs. 236 million followed by
Rwanda and Ethiopia with import values of Kshs. 88 million and Kshs. 55 million
respectively.

Exports to the regional COMESA market are detailed in table 5 below.

3
Uganda not included
Kenya’s Apparel & Textile Industry 9
Table 5: Principal Domestic Exports to COMESA (Value in Kshs ‘000)

Commodity Textile Yarn Fabrics, Woven or Made up Articles

Made

Angola - - 11,643
Burundi 5,736 - 12,202
Comoros - - 6
DR Congo 47,815 95 188,192
Eritrea - - 21,397
Ethiopia - 3,960 51,178
Malawi 16,652 2,972 9,371
Mauritius 7,557 2,265 -
Rwanda 12,118 793 74,885
Sudan 1,360 3,364 47,302
Zambia - - 10,687
Zimbabwe 10,792 - 2,880
Others** 3,998 11 1,210
Source: Statistical Abstract 2003 by Central Bureau of Statistics

The chart below shows total exports under Textile yarn, Fabrics woven & made and made
up articles to the 2 regional blocs of EAC and COMESA. The total exports totaled Ksh.1.5
billion.

Chart 5: Exports to COMESA and EAC combined

Major Export Markets (COMESA & EAC)

Ethiopia Others DRC

4% 8% 16%
Rwanda
6%

Sudan
4%
Uganda
31%

Tanzania
31%

Source: Statistical Abstract 2003 by Central Bureau of Statistics

Kenya’s Apparel & Textile Industry 10

 3. The African Growth and Opportunity Act (AGOA)

The African Growth and Opportunity Act (AGOA) was signed into law in the US on May 18,
2000 as Title 1 of The Trade and Development Act of 2000. The Act offers tangible
incentives for African countries to continue their efforts to open their economies and build
free markets. AGOA provides reforming African countries with the most liberal access to
the U.S. market available to any country or region with which the United States does not
have a Free Trade Agreement. It supports U.S. businesses by encouraging reform of
Africa’s economic and commercial regimes, which will build stronger markets and more
effective partners for U.S. firms.

AGOA extends duty-free and quota-free benefits to imports of a number of apparel items,
and textile products used to make those goods, produced in eligible sub-Saharan African
(SSA) countries. The Act has given the beneficiary sub-Saharan countries, Kenya
included, a window period (2000 – 2007) to develop their own base for the textile raw
materials, while allowing use of fabric and other materials on the apparel items from any
part of the world (3rd country fabric provision).

AGOA also expands the list of products, which eligible sub-Saharan African countries may
export to the US subject to zero import duty under the Generalized System of Preferences
(GSP) – see below. While generally GSP covers approximately 4,600 items, AGOA GSP
applies to more than 6,400 items. AGOA GSP provisions are in effect until September 30,
2015.

Two subsequent amendments have been done to the original AGOA act. The latest one
was signed into law in July 2004, which extended preferential access for imports from
beneficiary sub-Saharan African (SSA) countries until September 30, 2015; extended third
country fabric provision for three years, from September 2004 until September 2007; and
provided additional Congressional guidance to the Administration on how to administer the
textile provisions of the bill.

Since its implementation, AGOA has encouraged substantial new investments, trade, and
job creation in Africa. It has helped to promote sub-Saharan Africa's integration into the
multilateral trading system and a more active role in global trade negotiations. It has also
contributed to economic and commercial reforms, which make African countries more
attractive commercial partners for U.S. companies.

Impact of AGOA on the Kenyan textile sector

Kenya was the first African country to be accredited as an AGOA beneficiary in the sub-
Saharan African region. The enactment of AGOA opened up an opportunity for growth and
revival of the textile sector in Kenya.

The AGOA benefits brought foreign investors into the country particularly under the EPZ
program, manufacturing apparel for export to the US market. Between year 2000 and year
2001, there was an increment of 183% in terms of number of apparel producers
specifically for the US market, from 6 in 2000 to 17 in 2001, with a subsequent increment
in terms of investment from Ksh.1.2 billion to 3.8 billion (approximately US$ 15 to US$ 47
million) an increment of 214%. Under AGOA, Kenya’s exports to the US have increased
from US$ 45 million in 2000 to US $277 million by 2004.

The rise in exports of textiles from Kenya to the US are summarized in chart 6 below.

Kenya’s Apparel & Textile Industry 11

Chart 6: Value of Textile Exports (Value in US $ Millions)

Value of Textile Exports

300
277
250
US$ Millions

200
188
150
126
100
64
50

0
2001 2002 2003 2004
Year

Source: Office of Textile & Apparel, US - 2005

Of all sub-Saharan African countries that export textiles to the US under AGOA, the 6 main
beneficiaries listed below constitute about 89% share of exports by volume and 91% by
value as detailed in table 6 below.

Table 6: Share of AGOA Textile Trade by Sub-Saharan African Countries - 2004

Country Million Square % Share $ (Million) % Share by

Metre Equivalent Volume
Lesotho 111.128 24.1 455.643 24.3%
Kenya 73.396 15.9 277.327 15.6%
Madagascar 69.414 15.0 323.133 18.1%
Swaziland 61.469 13.3 178.712 10.0%
South Africa 57.362 12.4 163.864 9.2%
Mauritius 37.406 8.1 266.462 12.7%
Totals 410.175 88.8 1,625.141 91.2%
Source: Adopted from ACT Trade Report Vol. 8 No.2 (2005)

The total investment in the textile sector as of December 2003 is Kshs. 9.7 billion. Most of
the large investment is in the EPZs with a few under the MUB scheme. The number of
those who manufacture outside these two schemes can however not be ascertained.

Kenya’s Apparel & Textile Industry 12

Table 7: EPZ Garment Manufacturing Enterprises: Employment, Investment
and Exports 2000-2003

Year Number Number of Investment Total export

of firms employment Kshs (Billion) Kshs (Billion)
2000 6 6,487 1.2 2.3

2001 17 12,002 3.74 4.29

2002 30 25,288 6.90 8.15

2003 34 32,095 9.43 11.08
% Increase 17% 44% 41% 17%
Source: EPZA Annual Report 2003

According to statistics from the ministry of Trade and industry, there has been a steep rise
in the level of employment since enactment of AGOA. In 2000 there were 10,000 jobs in
the textile sector alone. This rose with the enactment of AGOA to form 15,000 in 2001, to
over 37,000 in 2003. These are only direct jobs, more jobs are likely to have been created
with the multiplier effect in areas like cotton fields, ginneries, suppliers of seeds and other
farm inputs and other textile raw material suppliers.

The phase out of the Multifibre Agreement quotas and the threat brought about by
anticipated shifting of orders by US buyers to China have, however, halted the growth and
resulted in closure of a number of factories in 2004 and loss of about 5,000 jobs.

4. Generalized System of Preferences (GSP)

The GSP is a system whereby developed countries grant preferential treatment to eligible
products imported from developing countries, so their exports would be competitive in the
developed countries’ markets. The preferential treatment is in the form of reduced import
duty, and granted without reciprocal obligations on the part of the developing countries.
The main preference giving countries under the GSP scheme are the US and the
European Union. The lower tariffs or duty free entry make it attractive for importers in the
donor countries to import from exporters in the beneficiary countries.

The Generalized System of Preferences (GSP) was negotiated under the auspices of
UNCTAD (United Nations Conference on Trade and Development). The objectives of the
GSP programme are to increase the export earnings of preference-receiving countries,
promote their industrialization and to accelerate their rate of economic growth.

Kenya is a beneficiary country under the GSP scheme of preference and can enhance
textile exports to the developed nations under this scheme. Exports to the US under this
arrangement for the year 2004 totaled US$ 6.79 million.

5. ACP / EU Cotonou Agreement

The Cotonou Agreement is a legal document that binds Europe and Africa in a long-term
perspective. Both parties have committed themselves to promote the economic, cultural
and social development of the ACP states as well as to a stable and democratic political
environment.

The Cotonou Agreement reshapes substantially the relationship between the ACP group
and EU countries: Member countries outside the EU currently enjoy non-reciprocal tariff
preferences offered to the ACP countries by the EU. However, this will from 2008 on, be
replaced by reciprocal Economic Partnership Agreements (EPA) in line with WTO rules.

Kenya’s Apparel & Textile Industry 13

Exports from Kenya entering the European Union are entitled to duty reductions and
freedoms from all quota restrictions. Trade preferences include duty free entry of all
industrial products and a wide range of agricultural products.

According to statistics available from the Central Bureau of Statistics, the principal export
market for both wool and cotton (unprocessed) is the United Kingdom. In 2002, Kenya
exported raw cotton and wool worth Kshs 16 million and Kshs 65 million respectively to the
UK market alone as compared to raw cotton and wool worth Kshs 66 million and Kshs 49
million respectively to the rest of the world.

4 Legal and regulatory framework

The Textile and apparel sector is regulated under two ministries - Trade and Industry for
trade issues and Ministry of Agriculture for cotton growing and irrigation schemes. The
Cotton Board of Kenya (CBK) was formed under the Cotton Act Cap 335. The Act also
provides for the promotion and regulation of cotton industry and for connected purposes.

The Cotton Board, which is currently inactive, was established to promote the cotton
industry in Kenya as well as:

- To plan, monitor and regulate cotton growing and cotton ginning

- To license and control ginners and other persons dealing with cotton
- To regulate and carry out quality control of raw cotton and cotton ginning
- To regulate the export or import of cotton lint or cotton seed
- To advise the minister on the pricing of raw cotton
- To regulate and control the quality and supply of planting seeds through ginneries
- To carry out and promote research and development in cotton production and
processing technology
- To provide training either on payment or without charge or co-ordinate training for
nay sector of the cotton industry

The market has changed over the years and for this reason the Kenya government
through the Ministry of Agriculture has prepared a bill which is currently before parliament
that will change the Cotton Act and replace it with one that is more dynamic and
responsive to the current market. This bill is awaiting debate in parliament to make it law.

The main export market for Kenya’s textile and apparel is the United States through
AGOA. This arrangement has strict rules of operation and exports entering the US have to
go through a strict AGOA visa procedure. Under AGOA is a clause that requires that in
order for countries to be eligible for apparel benefits, they must have in place an effective
visa system to prevent illegal trans-shipment and use of counterfeit documentation, as well
as effective enforcement and verification procedures. Procedures for obtaining the visa
entail registration with Ministry of Trade & Industry and application to Customs Department
through the Kenya Apparel Manufacturers & Exporters Association (KAMEA).

On the other hand, exports from Kenya to COMESA and EU require certificates of origin,
which can also be obtained from Customs Department of the Kenya Revenue Authority.

5 Reasons to invest in Kenya

Kenya is an ideal investment location for the textile industry as supported by various
investor friendly factors that include:

ƒ Ready farming community that only requires enough seeds and irrigation
schemes to be put in place

Kenya’s Apparel & Textile Industry 14

 ƒ Good research stations and facilities to carry out research on cotton seeds, fibres
and different varieties that can be introduced into the country e.g. Kenya
Agricultural Research Institute (KARI) and & Kenya Industrial Research and
Development Institute (KIRDI)
ƒ A vibrant manufacturing sector to absorb all the cotton produced that range from
ginneries all the way to garment manufacturing
ƒ Quality control bodies to maintain high standards like Kenya Bureau of Standards
(KEBS) and Kenya Plant Health Inspectorate Service (KEPHIS)
ƒ A bill to establish a new body (Cotton Development Authority) to replace Cotton
Board of Kenya is already before parliament. This bill is expected to address the
shortcomings of the previous Act and to be more responsive to the current
scenario
ƒ Kenyan climatic conditions are ideal for cotton growing as cotton does well in semi
arid areas, which Kenya has in abundance
ƒ There is ample land for cotton growing i.e. over 2 million hectares. Current
acreage under crop is only 25,000 hectares
ƒ The Kenyan population is currently at 31 million and growing. This provides a
ready local market for textile and apparel products
ƒ There is a seaport at Mombasa, which is linked to the mainland by rail and the
great North Road for ease of transportation of bulky cargo

Other additional advantages include:

• Strategic location
Located on the East African coast and having the port of Mombasa, Kenya is
strategically located for investors wanting to access the East and Central African
market. Kenya is also a regional hub for airlines allowing for easy access from and
to any part of the world.

• Access to the preferential market

Exports from Kenya enjoy preferential access to world markets under a number of
special access and duty reduction programs. These include: East African
Community, Common Market for Eastern & Southern Africa (COMESA), European
Union-African-Caribbean-Pacific (EU-ACP) Cotonou Agreement, Generalized
System of Preferences (GSP) and African Growth & Opportunity Act (AGOA).

• Labour availability
Kenya has abundant and relatively well-educated population; therefore skilled and
unskilled labour is readily available at reasonable rates.

• Stable political climate

Kenya has been one of the very stable countries in Africa since independence.
The country has had three presidents with smooth transition taking place from one
government to the next and peaceful elections held regularly. This is also
manifested in the number of international and regional organizations
headquartered in Nairobi including the UN, IGAD etc.

• Investor friendly arrangements

The Kenya government can guarantee investor friendly arrangements such as:

o the Export Processing Zones (EPZ) program which offers attractive

incentives to export-oriented investors and EPZ Authority to provide one-
stop-shop service for facilitation and aftercare
o the Investment Promotion Centre (IPC) to promote all other investment in
Kenya including in Manufacturing under Bond (MUB) program
o the Tax Remission for Export Office (TREO), a program for intermittent
imports for export production
o Generous investment and capital allowances
o Double taxation, bilateral investment and trade agreements

Kenya’s Apparel & Textile Industry 15

 • Investment insurance
The Constitution of Kenya provides guarantees against expropriation of private
property. In addition, capital repatriation, remittance of dividends and interest are
guaranteed to foreign investors under the Foreign Investment Protection Act
(FIPA) (Cap 518).

Kenya as a member of MIGA (Multilateral Investment Guarantee Agency) provides

investors with an opportunity to insure their investment in Kenya against a wide
range of non-commercial risks. Kenya is also a member of the African Trade
Insurance Agency (ATI), a multilateral export credit and political risk agency for
COMESA member states as well as the International Council for Settlement of
Investment Disputes (ICSID).

6 Investment Opportunities
Opportunities for investment in the textile and related industries in Kenya abound and
include:

ƒ Cotton growing – it is estimated that over 400,000 hectares of land is suitable for
cotton growing and presently only 24,955 hectares is under cotton. The current
production of cotton is about 20,000 bales compared to demand by local mills of
90,000 bales annually. There is also an investment opportunity in cottonseed
multiplication.
ƒ Cotton ginning – the country has an installed capacity of ginning of about 140,000
bales per year. Currently, the ginning capacity utilization is 14%. If these ginneries
were up and functional even at 50% utilization, this would give rise to other related
industries such as cooking oil extraction, animal feed processing etc.
ƒ Revival, development and or rehabilitation of some of the already closed textile
mills involved in spinning and weaving for local and export markets e.g. Rivatex,
Raymond Mills and investment in joint ventures in areas like modernization of very
old ginneries and textile mills.
ƒ Spinning – the yarn installed production capacity is 30,000 metric tonnes.
However, the actual annual production is 20,000 metric tonnes.
ƒ Weaving and knitting – the local production of woven fabrics in the year 2001 was
15.5 million sqm compared to a local demand of about 29 million sqm the same
year. The balance is imported. Furthermore, AGOA 3rd country fabric provision
requires that SSA countries utilize local fabric starting October 2007.
ƒ Garment accessories – the local production of garment accessories (zippers,
buttons, etc) is very limited in terms of variety and quality. Currently, most of the
garment manufacturers import their accessories. The current number of pieces of
garments exported in 2001 was about 20 million pieces by the end of 2003.
ƒ Services – with setting up of apparel manufacturing factories, opportunities have
arisen to provide the following services: buying houses, brokerage services, export
marketing, training etc.
ƒ Secondary industry – There exist opportunities in secondary industry e.g. cooking
oil, soaps, animal feeds and other cotton by-products.

7 Useful Contacts

Ministry of Trade and Industry Ministry of Agriculture & Rural

Telposta Towers Development
Kenyatta Avenue Kilimo House, Cathedral Road
P.O. Box 43137, Nairobi, Kenya P.O Box 30028, Nairobi, Kenya
Tel: 254-20-315001-4 Tel: 254-20-2718870
Fax: 254-20-315011 Fax: 254-20-2720586
Web: www.tradeandindustry.go.ke Web: www.agriculture.go.ke

Kenya’s Apparel & Textile Industry 16

 Tel: +254-20-884545/882308/882933
Investment Promotion Center (IPC) Fax: +254-20-882265
8th Floor, National Bank of Kenya Bldg. Email: [email protected]
Harambee Avenue Web: www.kephis.org
P.O. Box 55704, 00200 City Square
Nairobi, Kenya Kenya Association of Manufacturers
Tel: 254-20-221401-4 (KAM) &
Fax: 254-20-336663 Kenya Apparel Manufacturers and
Email: [email protected] Exporters Association (KAMEA)
Web: www.investmentkenya.com Mwanzi Road, Off Peponi Rd.,
Westlands
Export Processing Zones Authority PO Box 30225-00100 GPO, Nairobi
EPZA Administration Building Tel: 254-20-3746005/7/21, 3746021/2
Athi River EPZ, Viwanda Road Fax: 254-20-3746028/30
Off Nairobi - Namanga Highway Email: [email protected]
P.O Box 50563, 00200 Nairobi Web: www.kam.co.ke
Kenya
Tel: 254-45-26421-6
Fax: 254-45-26427 Kenya Agricultural Research Institute
Web: www.epzakenya.com (KARI)
Email: [email protected] Kaptagat Rd, Loresho
P.O. Box 57811, Nairobi 00200, Kenya
Export Promotion Council Fax: 254-20-583344
Anniversary Towers, 16th Floor Tel: 254-20-583301-20, 0733333223
University Way 0722206986, 0722206988
P.O. Box 42047 Nairobi, Kenya Email: [email protected]
Tel: 254-20-228534 Web: www.kari.org
Fax: 254-20-218013/228539
Email: [email protected] Kenya Bureau of Standards (KEBS)
Web: www.cbik.or.ke Belle-vue Area, off Mombasa Rd.
P.O. Box 54974, 00200 Nairobi Kenya
Kenya Industrial Research and Tel: 254-20-605490/605506/605550
Development Institute (KIRDI) Fax: 254-20-604031
PO Box 30650, Nairobi, Kenya Email: [email protected]
Tel: 254-20-504866/504867/600011 Web: www.kebs.org
Fax: 254-20-540166
Email: [email protected] Kenya Cotton Growers Association &
National Cotton Stakeholders Forum
Kenya Plant Health Inspectorate Service Accosca Hse, Valley Rd., Ralphe Bunch
(KEPHIS) Rd. Junction
Waiyaki Way, Westlands P.O. Box 51179, 00100 Nairobi, Kenya
P.O. Box 49592, 00100 GPO Tel: 254-20-2721509
Nairobi, Kenya Email: [email protected]

8 Sources of information & glossary

ƒ Ministry of Trade & Industry – Department of External Trade –

www.tradeandindustry.co.ke
ƒ Export Processing Zones Authority (EPZA) – www.epzakenya.com
ƒ Investment Promotion Centre (IPC) – www.investmentkenya.com
ƒ Kenya Institute of Public Policy Research & Analysis (KIPPRA) –
www.kippra.org/resources/abstract1.asp?
ƒ United States International Trade Commission – www.ustc.org
ƒ Office of Textiles & Apparel - http://otexa.ita.doc.gov
ƒ World Trade Organisation – www.wtc.org
ƒ United States International Trade Commission – www.usitc.gov

Kenya’s Apparel & Textile Industry 17

 References
The following publications and references were used in developing this report

ƒ Paper on Cotton/Textile Sub-Sector prepared by Ministry of Trade & Industry

(March 2004)
ƒ Developing a Revival Strategy for Kenya’s Cotton-Textile Industry: A Value Chain
Approach prepared by Moses M Ikiara & Lydia K Ndirangu of KIPPRA (Jan 2003)
ƒ Prospects of Kenya’s Clothing Exports under AGOA after 2004 prepared by
Moses M Ikiara & Lydia K Ndirangu of KIPPRA (Jan 2003)
ƒ Kenya Textile Sector Profile by EPZA (July 2002)
ƒ EPZA Annual Report 2003
ƒ Trade Notes –Industrial Relations Issues for AGOA Investors: The case of EPZs
by Institute of Economic Affairs (2002)
ƒ A glimpse at the cotton industry since the advent of AGOA prepared by Nancy
Muya, Nicholas Gakiha and Ongubo Nyakundi - Department of Trade – June
2004

9 APPENDICES

Appendix 1: List of garment manufacturing companies

under the EPZ program 19
Appendix 2: List of garment manufacturing companies
under the MUB scheme 19
Appendix 3: Textile Mills in Kenya 20
Appendix 4: Other Textile Related Industries under EPZ 22
Appendix 5: Cotton Ginners in Kenya 22

Kenya’s Apparel & Textile Industry 18

Appendix 1

List of Garment Manufacturing Companies Under EPZ Program

COMPANY PRODUCT LOCATION
1 Alltex EPZ Ltd. Pants Athi River

2 Apex Apparels EPZ Ltd. Pants, Shorts Nairobi

3 Ashton Apparel EPZ Ltd. Ladies & Gents Pants Nairobi

4 Baraka Apparels EPZ Ltd. Jeans, Pants, Shorts Nairobi

5 Birch Investment EPZ Ltd. Shirts, Shorts, Jeans, Pants Mombasa

6 BlueBird Garments (K) EPZ Ltd. Pants / Jackets / Jeans Mombasa

7 California Link EPZ Ltd. Pant, Dress, Shorts, Shirts, Mombasa

Pullovers
8 Chandhu EPZ Ltd Men, Ladies, Children Wear Mombasa

9 Global Apparels Kenya EPZ Ltd Pants, Shorts Athi River

10 JAR Kenya EPZ Ltd. Jeans, Shorts Nairobi

11 Kapric Apparels EPZ Ltd. Shirts, Shorts, Jeans, Pants, Mombasa

12 Kenya Knit Garments EPZ Ltd. Jackets, Tops, Sportswear Mazeras

13 Mega Garments Industries (K) EPZ Ltd. Means, Ladies & boys wear Mombasa

14 Mirage Fashion Wear EPZ Ltd. Shirts, Pants Athi River

15 MRC Nairobi EPZ Ltd. Pants Athi River
16 Protex EPZ Ltd. Tops, Jackets, tracksuits, shorts Athi River
17 Rising Sun Pants, shorts Athi River
18 Rolex Garments EPZ Ltd. Pants, Jeans, Shirts Athi River
19 Sahara Stitch EPZ Ltd. Pants, Jeans Nairobi
20 Senior Best Garments (K) EPZ Ltd. Pants, Pullover, Jackets, (Knit Mombasa
garments)
21 Shin Ace Garments (K) EPZ Ltd. Men, ladies, Children wear Mombasa
22 SinLane EPZ Ltd. Knit tops, knit pants, Jackets, vests Mombasa
23 Sino Link EPZ Ltd. Knitted Pants, T-shirts, blouse Mombasa
24 United Aryan EPZ Ltd. Pants, Shorts Nairobi
25 Upan Wasana EPZ Ltd. Pant, Blouse, dresses, shirts, Nairobi
Jackets, Pullover
26 Wild Life Works Ltd. Garments (T-shirts)/ Industrial Voi
buildings for lease to investors
Source: EPZA 2005

Appendix 2
List of Garment Manufacturing Companies Under MUB Scheme

Company Classification
Location
1 Apparel Africa Ltd Manufacture garments Mombasa
2 Apparels Trading Co Ltd. Manufacture of apparel Nairobi
3 Bedi Investments (Export) Ltd Manufacture textiles/garments Nakuru
4 Market & export of woven & none woven Nairobi
Binti Apparels Limited garments

Kenya’s Apparel & Textile Industry 19

5 Blue Plus Ltd Manufacture and export of garments Nairobi
6 Crown Fashions Ltd Manufacture of garments Nairobi
7 Eagle Apparel Export Ltd Manufacture of apparel Nairobi
8 Emke Garment Kenya Pv
Limited Manufacture of garments Mombasa
9 Equator Apparels Co. Ltd Manufacture of garments for export Nairobi
10 Excel Clothing Manufacture of apparel Nairobi
11 Falcon Apparel Exporters Ltd Manufacture of garments Nairobi
12 Freba International Mall Ltd Manufacture of textiles Nairobi
13 Garment label Manufacturers Manufacturing of Garment labels Nairobi
Ltd
14 Heritage Woolen Mills Ltd Manufacture of textiles Eldoret
15 Kibingo Textiles Ltd Manufacture of garments Kerugoya
16 Leena Apparel Ltd Manufacturing of garments Nairobi
17 Manchester Apparels Ltd Manufacterers of apparel Nairobi
18 Maridadi Apparels Ltd Manufacture of apparel Nairobi
19 Mash Apparels Kenya Ltd Manufacture of apparel Nairobi
20 Mega Spin Ltd Manufacture of textile Nakuru
21 Res Apparels Ltd Manufacture of garments for export Nairobi
22 Riziki Manufacturers Ltd Garment exporters Nairobi
23 Sankam Textiles Ltd Manufacture garments Nairobi
24 Sethi Fabric ltd Manufacture of garments for export Nairobi
25 Storm Apparel Manufacturers Nairobi
Ltd Manufactures apparel
26 Tana Apparels Ltd Manufacture garments Nairobi
27 Teleworld Industries Ltd Manufacture shirts for export Nairobi
28 Triaco Fine Textile Products Making garments Nairobi
29 Zawadi Apparels Ltd Manufacture and export of garments Nairobi
Source: Investment Promotion Centre 2005

Appendix 3

Textile Mills in Kenya

Company Product Locations

1 Afro Spin Ltd Cotton/synthetic fibres, spinning & weaving Nakuru

2 Sweater, Socks, Stockings, Knitting Yarns,
Alpha Knits Limited Kikois, Masai Shukas, Baby Shawl, Baby Thika
Blankets, Blankets
3 Textile Mill: Manufacturer of woven fabrics,
Bedi Investments Ltd Spinning, Weaving, Dyeing, Finishing and Nakuru
Garments
4 Bhupco Textiles Mills Ltd Cotton / Synthetic fibres spinning & weaving Thika

Kenya’s Apparel & Textile Industry 20

5 Sewing thread, Cotton yarn, polyester yarn,
Fine Spinners Ltd Nairobi
Blended yarn, Embroidery thread etc
6 Hercules Mills Ltd Knitted fabrics Nairobi
7 Knit, Textile Mill: manufacturer of woven
Heritage Woolen Mills Eldoret
fabrics
8 Jaydees Knitting Factory Ltd Knitting & Textile Manufacturer Nairobi
9 Kamyn Industries Ltd Textile Manufacturer Mombasa
10 Ken Knit Textile Manufacturer Eldoret
11 Kifaru Textile Mills Textile Mill: Manufacturer of woven fabrics Thika
12 Kisumu Cotton Mills Textile Mill: Manufacturer of woven fabrics Nyanza
13 Lamsons Industries Limited Blankets, Baby Shawls, Kikois Nakuru
14 Yarn and Woven Fabrics (Suiting, Bed
Londra Limited Nakuru
Sheeting, Dress Fabrics)
15 Hand knit yarn and blankets, cotton / synthetic
Mega Spin Ltd Nakuru
fibres spinning and Weaving
16 Knitted Cotton Fabrics and Garments (Blue
Midco Textiles (EA) Ltd Line Underwear’s & T-Shirts and Manhattan Nairobi
Shirts)
17 Cotton Yarn, Absorbent Hotel and embossed
Mombasa Towel Manufacturers Ltd Towels, Baby Nappies and Dyed Water Proof Mombasa
and tough canvas
18 Mount Kenya Textiles Ltd Woven fabrics – cotton / synthetics Nanyuki
19 Nakuru Fibres Ltd Polyester Textured yarns/Cotton Yarns Nakuru
20 Nakuru Industries Ltd Textile Manufacturer, Blankets Nakuru
21 Nanyuki Spinners & Weaving Yarns and Fabrics Nanyuki
22 Nyali Textiles Mills Textile Manufacturer Mombasa
23 Nyanza Spinning and Weaving Mills
Cotton / Synthetic fibres spinning and Weaving Nanyuki
(MOUNTEX)
24 Premier Knitwear Ltd Garments and Textiles Products Nairobi
25 RIVATEX Textile Mill: Manufacturer of woven fabrics Rift Valley
26 Cotton Yarn Manufacturer, Cotton Fibres Athi River
Rupa Cotton Mills EPZ Ltd
Spinning: Yarn EPZ
27 Shawaz Textile Mills Textile Mill: Manufacturer of woven fabrics Nairobi
28 Bra, Elastic Narrau Fabric, Lingerie, Knitted
Silver Star Manufacturers Ltd Nairobi
Fabric, Tie
29 100% Acrylic Hand Knitting Yarn, Blankets,
Spin Knit Limited Woven products Sweater - 100% Acrylic - Nakuru
School and Casual, Kikoi
30 Cotton / Synthetic fibres spinning and
Spinners & Spinners Ltd Ruiru
Weaving, Blankets, Knitwear
31 Yarns and Fabrics, Polyester Yarns, Knitted
Summit Fibres Ltd Mombasa
Fabrics, Mosquito Nets
32 Cotton / Synthetic fibres spinning and
Sunflag Textile & Knitwear Mills Ltd Nairobi
Weaving, Yarn, Fabric, Garments
33 Textile Mill: Cotton and Blended Yarns, Fabric
Thika Cloth Mills Ltd Thika
& Manufacturer of woven fabrics
34 Cotton Yarns and Fabrics, Canvas used for
TSS Spinning & Weaving Ltd making tents, Tarpaulins, Travelling bags, Athi River
School Bags
35 United Textile Industries Ltd Cotton / Synthetic fibres spinning and Weaving Nairobi
Source: www.cottonafrica.com 2004 & the Official Yellow Pages of the Kenya Telephone Directory 2004
Non – operational Mills (KICOMI, Heritage, RIVATEX and MONTEX)

Kenya’s Apparel & Textile Industry 21

Appendix 4

Other Textile Related Industries under EPZ

Company Product / Activity Locations

1 Maximus EPZ ltd Embroidered & screen Mombasa
print ed apparel
2 Match Point Kenya Ltd Buying agent Nairobi
3 Forum International Washing chemicals Mombasa

4 Texa Care Africa EPZ Ltd Washing chemicals Mombasa

5 Middle East Texco EPZ Ltd Washing chemicals Mombasa

6 YKK Kenya EPZ Ltd Zip fasteners Mombasa

7 Hong Kong Garments (K) EPZ Ltd Garment accessories Nairobi

8 Premium Machinery EPZ Ltd Sell & servicing of Nairobi
sewing machines
9 Al-borj Kenya EPZ Ltd Sell & servicing of Nairobi
sewing machines
Source: EPZA -2005

Appendix 5

Cotton Ginners in Kenya

Company Product / Activity Locations

1 Africot East Africa Ltd Cotton Ginnery Malakisi / Bungoma
2 Agribusiness Development Cotton growers & Ginning association
Consortium member Kitale
3 Amukura Ginners Ltd Cotton Ginnery Amukura / Busia
4
Asego Holdings Ltd Cotton Ginnery Homa Bay
5
Bulemia Oils Mills Cotton Seed Oil Processing Western
6
F.B. Gudka Ltd Cotton Ginnery Kisumu
7
Gaitu Ginnery Cotton Ginnery Embu District
8
Hola Ginneries Cotton Ginnery Hola – Coast Province
9 Kenya Cotton Industry Ltd Cotton Ginnery Angurai Ginney – Malakisi
10
Kerio Farms Ltd Cotton Ginnery Salawa / Kerio Valley
11 Cotton Ginnery, Oil Extraction, animal
Kibos Ginnery F.B. Limited* feeds extraction & soap processing Kisumu
12
Kitui Ginneries Ltd Cotton Ginnery Kitui
13
Lamu Cotton Growers Ltd Cotton Growers Lamu
14
Malakisi Ginnery Cotton Ginnery Bungoma District
15
Makueni Ginners Ltd Cotton Ginnery Makueni
16
Malindi Ginners Ltd Cotton Ginnery Malindi
17
Meru Farmers Ginnery Ltd Cotton Ginnery Meru
18
Mpeketoni Ginnery Cotton Ginnery Mombasa
19
Muluanda Ginnery Cotton Ginnery Teso District

Kenya’s Apparel & Textile Industry 22

 Company Product / Activity Locations
20
Mwea Ginnery Cotton Ginnery Kirinyaga District
21
Nyanza Ginnery Ltd* Cotton Ginnery Kisumu
22
Tharaka Ginnery* Cotton Ginnery Tharaka Nithi District
23
Ugenya Lint Processing Lint Processing Kisumu
24
Voi Industries Ginnery Cotton Ginnery Nakuru

Source: Ministry of Trade & Industry 2004

• Some of the privately owned ginneries

Kenya’s Apparel & Textile Industry 23