The government through the ministry of Industry is seeking for more investors in the textile industry to drive local production while creating more jobs for its citizens.
Speaking on Thursday during the India International Textile and and Machinery exhibitions, Industry PS Juma Mukhwana urged the exhibitors in the summit to leverage the opportunity gap that Kenya offers in the sector.
“We are largely seeking for synthetic fibre manufacturers, as the country has none currently. The product makes the largest proportion of textiles we produce, about 70 per cent, compared to cotton which only does 30 per cent,” Mukhwana said.
He added that Kenya is still doing badly in terms of manufacturing, noting that with more Indian investors in the sector, it will mean increased production of cotton, further benefiting the local farmers.
“The investments will come in handy with the government’s plan to increase cotton production from the 40,000 acres record this year, to about 100,000 acres next year, and hopefully hit the 400,000 acres mark in the next three years.”
To achieve this, he noted that the government has also set aside Sh100million for purchase of cotton seeds in the current Financial Year, compared to the Sh25million in the previous year.
Mukhwana further lauded the government’s move to increase the purchase price of cotton clink from local farmers, increasing it to Sh65 per kilo from the previous Sh52, a move he says will promote cotton farming while improving farmers’ welfare.
While wooing the exhibitors to consider setting base in the country, the PS told the investors that having their businesses in Kenya, is a guaranteed gateway into the larger East African market and Africa at large, consideration the ongoing implementation of the free trade agreement under the AfCFTA.
“Kenya has also concluded the strategic partnership talks with the European Union to allow quota and duty free exportation to the 27 European countries, with the deal expected to be sealed in early December. This is a further reason why you should consider setting base in Kenya, a much friendly international market reach as well,” Mukhwana said.
Duty-free refers to the purchase of a commodity without paying import, sales, value-added, or other taxes. On the other hand, quota-free refers to a situation with no limits or restrictions on the amount of a particular product or commodity that can be imported or exported.
Also speaking during the summit, EPZA board chairman Richard Cheruiyot announced that Kenya will be receiving its first ever investor in synthetic fibre manufacturing, who will be groundbreaking early next year.
Titled Youngone Corporation, the South Korean firm is set to be the first ever synthetic fibre manufacturer setting base in Africa, using Kenya as the launch pad.
“It comes in with an initial investment of $30 million (Sh4.6 billion), and will seek to employ at least 3,000 people,” Cheruiyot said.
