THE KENYAN TEXTILE AND FASHION INDUSTRY

equires differentiating as an ethical sourcing
destination, including respecting worker rights and
maintaining a safe working environment.
Kenya does have two main advantages today,
which it could leverage. First of all, it has a
substantial history of apparel manufacturing.
While the sector contracted after the 1990s trade
liberalization in Kenya, which brought in a flood of
cheap imports and second-hand clothing, before
then, Kenya was a regional hub of apparel and
textiles. Despite the decline (which is reflected in
both human and physical capital), Kenya retains
a productivity and professionalism edge over its
African neighbours: “While Ethiopian workers are
unused to life in a factory and managers say labour
retention beyond six months is dicey, Kenyans are
expert clothes makers.” 12 A 2009 study found that
productivity between Kenyan and Bangladeshi
clothing manufacturers was comparable, and that
the cost differential was driven instead by wages.
13
While the productivity of the two countries has
probably diverged since (though, simultaneously,
wages in Bangladesh have been rising), a 2012
USAID apparel study found that the in-factory costs
for Kenya were comparable with those of China
and Cambodia, and that it was instead the higher
costs of inputs (fabrics and trims) and in-country
transport that ate away at the cost advantage
offered by AGOA. 14 Building on the historical
tradition that has given Kenya a productivity edge
down to the current day should be part of Kenya’s
competitive strategy for attracting global buyers.
The key challenges section below addresses some
of the issues on the flip side, as Kenya’s skill base
has declined, and the country faces high input
costs that offset this advantage.
The other major advantage that Kenya has is the
strong government policies supporting the apparel
sector and an attractive business environment,
discussed above. Apparel is a top government
priority, and they have established a “Textile City” in
Athi River. Kenya’s EPZs offer companies a 10-year
tax holiday, exemption from paying duties or VAT,
and a 100% investment deduction. Additionally,
the Kenyan government has recently subsidized
electricity in the designated zones for apparel
manufacturers, cutting power costs, which were
previously debilitatingly high, in half.
Kenya’s government is also working to address
port and customs issues, and a Nairobi-Mombasa
railway is under construction, which would
expedite and reduce the cost of within-country
transport. Some consider Kenya “one of Africa’s
most attractive business environments,” 15 and it
has the advantage of being one of the countries
most frequently mentioned (alongside Ethiopia) in
the discussion of growing hotspots in the garment
industry in Africa.
most frequently mentioned (alongside Ethiopia) in
the discussion of growing hotspots in the garment
industry in Africa.
12
Supra note 10.
13
Takahiro Fukunishi “Has
Low Productivity Constrained
The Competitiveness Of
African Firms? A Comparison
Of Kenyan And Bangladeshi
Garment Firms”, The
Developing Economies,
September 2009.
14
Supra note 9
15
Solidaridad, “Africa en
Vogue: The Opportunities
And Challenges Of Textile &
Apparel Sourcing Markets In
East Africa,” February 2015.
The Kenyan Textile And Fashion Industry Report
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