Fine Spinners Uganda Limited is investing an additional US$5 million in textile machinery as it seeks to become a larger supplier to Kenya’s export-oriented apparel industry.
The Kampala-based vertically integrated manufacturer expects the investment to increase its mill capacity by between 30% and 40%. Once the new equipment is fully commissioned, the company projects additional monthly capacity of approximately 30 to 40 tonnes of yarn and between 150,000 and 200,000 garments.
The latest expansion will reportedly bring Fine Spinners’ cumulative machinery investment at its Kampala mill to around US$35 million. The company currently employs approximately 1,600 people at its Bugolobi facility and expects the expansion to create between 150 and 200 additional jobs.
Fine Spinners’ immediate commercial priority is Kenya, where apparel manufacturers operating within Export Processing Zones produce garments for major international brands and the US market.
“We see significant potential in strengthening regional textile supply chains and supplying high-quality fabric to apparel manufacturers in Kenya,” said Sav Bedi, chief executive of Fine Spinners Uganda Limited.
“This investment gives us additional capacity and technology to serve international customers while expanding our presence across the region.”
Kenya Becomes the Focus of Regional Expansion
Many garment factories operating in Kenya’s EPZs continue to source significant quantities of fabric from China and India.
Fine Spinners sees an opportunity to provide these manufacturers with a geographically closer source of yarn and fabric while supporting the development of a more integrated East African textile supply chain.
The company intends to target fabric supply contracts connected with major US brands manufacturing garments in Kenya.
Shorter sourcing distances could help Kenyan apparel factories reduce lead times and transport complexity. A regional supplier could also make communication, product development and quality management more responsive than sourcing material from distant Asian markets.
The strategy is also shaped by the different trade positions of Uganda and Kenya.
Uganda was removed from eligibility under the African Growth and Opportunity Act in January 2024 and remains excluded from the programme. Kenya, by contrast, continues to qualify for textile and apparel benefits.
AGOA was allowed to expire in 2025 before being reinstated through December 31, 2026, although uncertainty remains over its longer-term future.
Uganda’s exclusion limits the ability of Fine Spinners to export Ugandan-made garments directly to the United States under AGOA’s duty-free terms. Supplying fabric to eligible garment manufacturers in Kenya therefore offers the company an indirect route into an established US-oriented apparel production network.
Fine Spinners’ approach does not remove the need for exporters to comply with AGOA’s applicable origin and customs requirements. However, it could allow the Ugandan manufacturer to benefit from regional demand generated by Kenya’s export apparel industry.
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Machinery Investment Covers the Textile Value Chain
The US$5 million investment is being distributed across Fine Spinners’ integrated operations, which include spinning, knitting, weaving, dyeing, finishing and garment manufacturing.
The company said its new machinery had been sourced from several established international textile technology suppliers.
The equipment includes spinning technology from Saurer and Rieter, weaving machinery from Picanol and warping equipment from Prashant Group.
Knitting technology has been sourced from Pai Lung, while the dyeing and finishing section incorporates equipment from Fong’s and Bianco.
The investment also includes stentering machinery from Brückner and laboratory and quality-control systems from Datacolor.
Most of the machinery has already been delivered and is undergoing pre-production trials. The new weaving plant is also on site, with commissioning expected to begin in October 2026.
The use of equipment across multiple production stages is important to the company’s strategy. Fine Spinners operates as a vertically integrated manufacturer, processing Ugandan cotton into yarn, fabric and finished garments at its Kampala facility.
This structure gives the company greater control over quality, production planning and material traceability than a business operating at only one stage of the textile value chain.
Fine Spinners Targets Japan and Deeper European Growth
Fine Spinners currently supplies customers in Germany, Denmark, Spain, Gabon, South Sudan, Rwanda, Uganda and Kenya.
The additional capacity will support the company’s planned entry into Japan, deeper penetration of European markets and further expansion across East Africa.
Kenya nevertheless represents the most immediate opportunity because of its established EPZ infrastructure and concentration of export garment manufacturers.
For international brands, regional fabric sourcing could provide an alternative to dependence on Asian supply chains. However, cost and proximity alone will not be sufficient.
Fine Spinners will need to meet the quality, consistency, volume, certification and delivery requirements of international buyers. Fabric performance, colour consistency, production reliability and compliance documentation will be critical to converting the new capacity into long-term contracts.
The expansion also reflects a wider effort to retain more textile value within East Africa.
The region has a cotton-growing base and a substantial apparel market but continues to import large volumes of yarn, fabric and finished textile products. Building stronger connections between regional cotton, textile mills and export garment factories could reduce this dependence while creating industrial employment.
Fine Spinners’ investment provides a practical example of how cross-border production can support regional integration. Ugandan cotton and manufacturing capacity could supply Kenyan apparel exporters, while Kenya’s EPZ infrastructure provides access to larger international markets.
Whether this model can expand will depend on commercial competitiveness, trade-policy stability and the ability of regional manufacturers to deliver materials that meet the standards of global brands.
