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Kenya’s Government Boosts Cotton Industry with 38% Price Increase

Kenya’s government has implemented a significant 38 percent increase in the purchase price of cotton, aiming to stimulate farmers and drive a notable surge in cotton production. This strategic move targets a doubling of output for export to the US market, forming a crucial component of wider efforts to rejuvenate the cotton and textile value chains.

Juma Mukwana, the Principal Secretary of the State Department of Industry, has disclosed a substantial investment of Sh60 million to support local farmers in expanding their cultivation areas. This investment is expected to expand the cotton cultivation area from 40,000 acres in 2023 to an impressive 103,000 acres, with anticipation boosted by the forthcoming long rains across the 24 cotton-growing counties.

Addressing the Critical Cotton Seed Shortage

To combat the acute shortage of cotton seeds, the government has taken proactive measures, including importing 60 metric tons of seeds from Togo for multiplication purposes. Additionally, over 27 tonnes of open-pollinated and BT cotton seeds will be distributed among farmers, ensuring a sustainable supply for future cultivation.

Beyond increasing cotton production, the government is investing significantly to modernize Rivatex, a local textile firm grappling with raw material shortages and heavy import reliance. A substantial Sh5 billion investment has been earmarked for this purpose, alongside ambitious plans to expand cotton-growing areas to over 340,000 acres within three years.

Meeting AGOA Requirements

Prof. Thomas Kipkurgat, the manager of Rivatex, underscores the importance of meeting the Africa Growth and Opportunity Act (AGOA) requirements, which mandate 100 percent locally sourced raw materials for fabric production. By boosting local cotton production, Kenya aims to strengthen its textile industry and position itself favorably to benefit from AGOA privileges.

The move to increase cotton yields marks a significant step towards revitalizing Kenya’s textile industry, fostering economic growth, and creating opportunities for local farmers and manufacturers.”

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