A Storied Past, A Precarious Present

Kenya's textile and apparel industry stands at a critical juncture, caught between a storied past as a manufacturing powerhouse and a future clouded by persistent challenges. In its heyday during the 1980s, the sector was a cornerstone of the nation's economy, employing nearly 30% of the total manufacturing workforce and supporting over 200,000 cotton-farming households. At its peak, the country boasted 52 textile mills, forming an integrated ecosystem from cotton farms to finished garments.

However, the economic liberalization of the early 1990s marked a turning point. The policy shift opened the floodgates to cheap new and second-hand clothing, known locally as *mitumba*. Unable to compete, local mills began to fold. By the early 2000s, most large-scale manufacturers had either collapsed or were operating at less than 10% of their capacity, as reported by industry analysts. Today, only 15 of the original mills remain operational, running at less than 45% of their total capacity, according to a report by the Italian Trade Agency.

The Mitumba Dilemma and Cotton Crisis

The influx of *mitumba* created a complex socio-economic dynamic. While providing affordable clothing for millions and supporting an estimated 2 million jobs in its own value chain, it has severely hampered the revival of local manufacturing. Kenya imported 177,000 tonnes of used garments in 2023, making it Africa's leading importer of such goods. This thriving trade directly competes with locally produced textiles, which are often priced higher due to significant operational costs.

Compounding the issue is the near-collapse of local cotton production. Once a major foreign exchange earner, cotton farming has dwindled dramatically. National production peaked at 38,000 metric tonnes in the 1984/1985 season but plummeted to below 10,000 tonnes annually in recent years. Kenya's annual demand for cotton lint is estimated at 111,000 tonnes, forcing the country to import over 80% of its raw material needs, primarily from Tanzania and Uganda. Farmers face low profitability due to high input costs, poor quality seeds, and unreliable markets.

Government's Blueprint for Revival

In response, the Kenyan government has identified the textile sector as a priority value chain under its Bottom-Up Economic Transformation Agenda (BETA) and the broader Vision 2030 development plan. The strategy is outlined in the draft National Cotton, Textile, and Apparel (CTA) Policy 2024, which aims to revitalize the entire value chain from farm to fashion.

Key government initiatives include distributing 70 metric tons of certified cotton seeds, including BT cotton varieties, across 24 counties to boost yields. There are also plans to establish modern cooperative ginneries and modernize existing ones to improve processing efficiency. A flagship example of this push is the modernization of Rivatex East Africa Limited in Eldoret. Following a government-backed KSh 5 billion modernization, the facility increased its production capacity from 5,000 to 40,000 meters of fabric daily. However, despite this investment, the factory still operates significantly below its installed capacity due to working capital constraints and a shortage of local cotton.

The AGOA Lifeline and Global Opportunities

While the domestic market struggles, the export-oriented apparel sector, primarily operating within Export Processing Zones (EPZs), has been a relative success story. This is largely thanks to the African Growth and Opportunity Act (AGOA), which provides duty-free access to the US market. Kenya is the leading apparel exporter to the US under AGOA, with exports reaching KSh 60.6 billion in 2024, a 19.2% increase from 2023, according to the Kenya National Bureau of Statistics Economic Survey 2025. The sector provided 66,800 direct jobs in 2024, a 15.2% increase from the previous year.

However, this lifeline faces uncertainty. The AGOA pact is set to expire in September 2025, and its renewal is not guaranteed. Furthermore, proposed tariffs by the US could erode the competitive advantage Kenyan exports currently enjoy. This uncertainty underscores the urgency for Kenya to strengthen its domestic value chain to reduce reliance on imported raw materials for its EPZ factories and build a more resilient, self-sustaining industry. The government's goal is to raise the manufacturing sector's contribution to GDP to 20% by 2030, a target in which a revived textile industry is expected to play a pivotal role.