Why Thika Cloth Mills is soon expanding to Coast

From Tana River, Kwale to Lamu, cotton was once a "white gold" for locals in the 1970s up to the 1990s, when the country's textile industry was vibrant with ginneries, spinning and textile manufacturing industries.

It was also a time when co-operatives were strong across different sectors, which saw farmers reaping big.

Rated among the top clothing manufacturers in Kenya, Thika Cloth Mills is set to build a Sh100 million ginnery at the Coast.

The company, which was established in 1958, plans to supply cotton seeds to growers to boost production in areas such as Lamu, where output has increased from 800kg to 2 million kilos per annum.

Managing director Tejal Dodhia says the Thika-based factory will continue working with all other ginners and farmers. 

“The factory has taken this move only to enhance cotton production capacity,” she said during an interview at her office.

She said last season, Lamu county hit a new high, making it attractive for more investments for increased production.

“We are planning to raise output to four million kilos in the next season. This is the same with all other counties. Most of the regions have doubled their capacities in the last few years,” she said.

Dodhia said Thika Cloth Mills last year gave cotton seeds to farmers in Lamu, Taita Taveta, Malindi and Kwale at the Coast and to others in the Western Kenya counties of Siaya, Homa Bay, Busia and Bungoma.

She said the mill also gets cotton from Kitui, Meru and Machakos. 

The company works with more than 20,000 small-scale farmers countrywide through various cooperatives in cotton-growing areas.

Dodhia says the ginning of this cotton is done by Makueni, Kitui, Salawa, Meru, Sungin and Luanda ginneries.

“We are very proud of our farmers, who have been getting more organised, forming cooperatives and working well together in groups,” Dodhia said.

However, some ginneries are not working to full capacity, hence the need to support farmers to expand and increase production, she said.

“We need to push up production of cotton. Farmers have to work harder on their yields per acre as this will not only give them more money but also reduce the costs of production,” Dodhia said. 

We need to push up production of cotton. Farmers have to work harder on their yields per acre as this will not only give them more money but also reduce the costs of production

VALUE CHAIN   

Thika Cloth Mills is a fully integrated textile factory based in Thika town, employing 650 full-time skilled workers who spin, weave and process materials for the garment industry.

The mill produces clothing materials used to make school uniforms for children, security companies, the corporate world and disciplined forces.  

“We also make 100 per cent cotton fabrics used in both khangas and kitenges," Dodhia said.

The company also produces materials for the shoe industry, bag and furniture workshops, and sailboats, with a big market coming from the Coast region.

"The company is proud of the whole value chain, from farmers to cooperatives, extension officers in counties and county officials as farming is now devolved," Dodhia said.

She also counted the managers of ginneries who have remained strong and ensured that no grower waits for more than a week to be paid for their crop.

She said in 2013, the Agriculture, Fisheries and Food Act consolidated a number of regulatory and marketing boards. 

These included the Sisal Board of Kenya and the Cotton Development Authority, whose role was taken over by the Agriculture and Food Authority Fibre Directorate.

Thika Mills processing manager Dickson Kariuki Kinuthia said cotton grown locally is their main raw material but has to be blended with other imported fibres.

"Cotton is produced in various areas of our country, but the output is not enough to sustain our textile factories’ production capacity,” he said.

"So, we import from neighbouring countries such as Uganda, Tanzania and Zambia."

About 50,000 farmers are growing cotton in Kenya, producing 25,000 bales against a demand of 200,000 bales of lint, with the BT cotton expected to increase production to an annual average of 260,000 bales.

"Until the 1970s, Kenya was a major cotton producer for domestic and international consumption," Kinuthia said.

"At its peak, the industry supported more than 200,000 households, something that is likely to be witnessed in the medium to long-term as the industry becomes vibrant again."

Thika Cloth Mills currently supports about 20,000 of these small-scale farmers — from the Coast, Eastern and Western Regions — who directly help the company by sustaining a stable supply.  

“If we have a steady supply of cotton, we will improve and boost our production even further,” Kariuki said.

DROUGHT EFFECT

Dodhia said the ongoing drought has hit cotton-growing areas, and production will be low this year.

There is a general water shortage and the water bills have also increased.

“This makes it very difficult to compete in international markets against the likes of China and India,” she said.

She said power costs have in the meantime increased from Sh14 to about Sh20 per unit, further driving up the cost of production.

“I would have really fought this power increase but also understand fighting it might lead to us not having enough power, so we just have to accept,” she said.  

She said to counter this, Thika Cloth Mills, just like many other manufacturers, will invest in solar power. So far, the company has installed 1MW.

Dodhia said higher production costs make it impossible to compete with countries from India and China. She called on Kenyans and the government to support local factories by buying Kenyan products.

“When you import, you send our money to another country and create jobs there, yet the jobs are badly needed here,” she said.

"When you buy Kenyan products, you create jobs for our people, empower and skill our workforce and give us a sense of pride."

I am not a second-hand import enthusiast and I am really not happy that Africa is the dumping ground for the rest of the world

MITUMBA PROBLEM

Meanwhile, second-hand clothing, commonly known as 'mitumba', remains a challenge for local industries.

"Of course, mitumba is cheap and it creates jobs for more than a million traders in this country, so we cannot just stop imports,” Dodhia says.

“I am not a second-hand import enthusiast and I am really not happy that Africa is the dumping ground for the rest of the world. 

"We have a big problem disposing of this waste, which is really not fair. What we need are products that will add value and not just be landfills,” she added.

She urged mitumba traders to also sell local products in the spirit of Buy Kenya, Build Kenya initiative. 

 “Even if they sell one kitenge shirt and 10 mitumbas, we will be somewhere and we will know we are putting our country first,” she said.

She said the factory is fighting for its space through better quality, faster deliveries, transparency (from cotton to garment) and economical, smaller production runs, which makes it easier to cope with the onslaught of Chinese and Indian competition.

“Increasingly, we get to see proud Kenyans like myself buying Kenyan produce as we want to make a difference to our country and its development,” she said.

The expansion by the company comes at a time when local industries are eying more export markets, riding on existing trade agreements,

These include AGOA (African Growth and Opportunity Act), which provides duty-free treatment to goods of designated sub-Saharan African countries to America. 

Others are Free Trade Agreements, which give access to the UK and Europe, and the African Continental Free Trade Area (AfCFTA), one of the 13 flagship projects of Agenda 2063.

“All markets are open and we keep looking for opportunities,” Dodhia said. 

“We thank God for our existence and pray that He continues to bless the work of Kenyan hands. And to keep everyone going: farmers, ginners, textile mills, garment factories and tailors.”