Kenya’s textile and cotton sector—once a cornerstone of the national economy—appears ready for a long-awaited resurgence after decades of decline. Once employing nearly 30 percent of the manufacturing workforce and supporting more than 200,000 cotton-farming households, the industry collapsed in the 1990s under the weight of underinvestment, inconsistent policies, and a surge of second-hand imports.
A Sector in Decline
The liberalisation of the early 1990s exposed Kenya’s market to global competition before local mills were prepared. Within years, once-thriving factories shut down, ginneries rusted, and cotton production fell below 10,000 MT annually. By the 2000s, many garment manufacturers were operating at less than 10 percent capacity. An integrated value chain that stretched from farms to finished fabrics nearly vanished.
New Policy Signals a Turning Point
Three decades later, optimism is returning. The Cotton, Textile and Apparel (CTA) Policy 2024 outlines a clear roadmap for revitalising the sector through value-chain integration, private-sector partnerships, and incentives for modernisation. Kenya currently imports $2.2 billion worth of textiles each year—despite being a cotton-producing nation—leaving a major import-substitution gap. Local mills supply less than 45 percent of domestic demand.
If Kenya replaces even a portion of these imports and upgrades its production capacity, exports could triple to $2 billion by 2030, up from $628 million in 2024. The policy also envisions re-engaging 200,000 cotton farmers and rejuvenating production across 24 counties.
Powerful Economic and Social Impact
A revitalised textile ecosystem would generate thousands of jobs in farming, logistics, transport, retail, and manufacturing—critical at a time when 17.7 percent of Kenyan youth are unemployed. The revival would also boost rural incomes, reduce the trade deficit, and strengthen Kenya’s competitiveness under AGOA, the African Continental Free Trade Area (AfCFTA), and the Everything But Arms (EBA) trade framework.
A Global Opportunity
Global supply chains are shifting. Rising costs in Asia, sustainability requirements, and changing trade dynamics are prompting brands to diversify sourcing into Africa. Studies by Gherzi show that over half of Africa’s apparel demand—worth $74 billion in 2024, and projected to reach $93 billion by 2030—is met by imports. Kenya’s 10 percent tariff advantage into the U.S., combined with the AGOA extension, offers a competitive edge when paired with vertically integrated manufacturing.
A Transformation Already Underway
From upgraded production lines at Rivatex in Eldoret to new knitwear operations in Vipingo, Kenya’s textile revival is no longer theoretical—it is unfolding in real time. Targets of 22,000 jobs, $514 million in annual output, $470 million in investment, and $2 billion in exports by 2030 are bold yet achievable.
With government offering the enabling environment and private enterprise driving the execution, Kenya’s textile renaissance is gaining momentum. What was once a story of decline is rapidly becoming a blueprint for sustainable African industrialisation.— Olaka, Arise IIP Lead for Kenya
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