A shadow has fallen over the glittering world of Italian luxury fashion. Probes led by Milan prosecutors have exposed a dark network of subcontractors exploiting workers to produce goods for some of the world's most revered brands, raising urgent questions about corporate oversight and the true cost of high fashion.

The core of the issue lies in a tangled system of subcontracting, where luxury houses outsource production to suppliers who then pass the work to smaller, often Chinese-owned workshops. It is in these workshops, hidden from the view of high-street boutiques, that investigators allege a grim reality of worker abuse, including grueling hours, illegal pay, and degrading living conditions. For consumers in Kenya and around the world, the scandal forces a reckoning with the ethics behind the aspirational products they purchase.

A Widening Net of Investigations

Since the beginning of 2024, a series of court-ordered administrations has shaken the industry. The investigations, spearheaded by prosecutor Paolo Storari, have implicated several iconic names. While the brands themselves are not typically under direct criminal investigation, their subsidiaries have been cited for a culpable failure to monitor their supply chains.

The list of companies whose units have been placed under judicial administration includes:

• Giorgio Armani Operations
• Manufactures Dior, a subsidiary of LVMH
• Loro Piana
• Alviero Martini
• Tod's is also facing a court hearing where prosecutors are seeking outside administrators.

Investigators discovered workshops where migrant workers, some without legal papers, were allegedly forced to work exhausting hours, sometimes sleeping in the same hazardous facilities where they worked. In one case related to Armani's supply chain, workers were reportedly paid as little as 2 to 3 euros per hour (approx. KES 280-420). A Dior handbag that retails for thousands of euros was found to have a factory cost of just 53 euros (approx. KES 7,400).

The Kenyan Connection: A Mirror to Global Labour Issues

While the scandal is unfolding thousands of kilometers away, it resonates deeply within Kenya's own textile and apparel industry, the nation's third-largest export sector. The Italian case highlights the global pressure for cheaper production, a reality Kenyan manufacturers navigate daily. It underscores the vulnerability of workers in complex supply chains, a concern pertinent to the over 330,000 Kenyans employed directly and indirectly in the sector, the majority of whom are women in lower-tier jobs.

The 'Made in Italy' label has long been a symbol of quality and craftsmanship. This crisis, however, suggests that without rigorous oversight, such labels can mask exploitation. It serves as a critical lesson for Kenya as it seeks to grow its own manufacturing base and promote the 'Made in Kenya' brand. Ensuring ethical labour practices is not just a matter of compliance but a crucial element of building a sustainable and respected national brand on the global stage.

A Call for Transparency

In response to the probes, some companies, like Giorgio Armani Operations, have reportedly taken corrective actions, leading to the early end of their court administration. However, critics and labour advocacy groups argue that voluntary measures are not enough, calling for binding regulations that apply to the entire supply chain. The investigations continue, with prosecutors suggesting more brands could be scrutinized. As one Milan court president noted, the relentless pursuit of profit often leads businesses to ignore the alarm bells of impossibly low production costs, a warning that echoes from Milan to Nairobi.