President William Ruto announced that Kenya aims to achieve over $1 billion (equivalent to Sh.133 billion) in textile and apparel exports by the year 2027.
He based this projection on the sector’s current growth trends and increasing investment.
“A compound annual growth of 20 per cent is feasible, which would produce over $1 billion in exports and create 200,000 more jobs by 2027, further increase exports to $2 billion with 650,000 jobs by 2031, and reach over $3 billion of exports and more than 850,000 jobs by 2034,” Ruto stated during the inauguration of the Nexgen Packaging factory at the Athi River Export Processing Zone (EPZ) in Machakos County.
He mentioned that Kenya’s EPZ network has expanded, with 101 gazetted zones spread across 22 counties.
The network has attracted cumulative investment totaling Sh.149 billion and provides direct employment to over 75,000 people.
In addition, Ruto pointed out that the textile and apparel subsector consists of over 100 companies employing more than 66,000 people directly and between 150,000 and 200,000 indirectly.
According to a Kenya Association of Manufacturers (KAM) report, the current level of Kenya’s apparel exports is about Sh.51 billion.
The country holds the distinction of being the largest exporter of garments under the African Growth and Opportunity Act (AGOA), with the United States serving as the primary destination for Kenya’s apparel exports.
Several well-known American fashion brands, including H&M, Levi’s, JC Penney, and Wrangler, source their garments from Kenya.
President Ruto highlighted that the United States, through USAID, has granted over $11 million (around Sh.1.47 billion) to support job creation, boost trade, and strengthen Kenya’s textile and apparel sector.
He added that this investment is aimed at expanding Kenyan fashion brands like Vivo, Ikwetta, and Ubuntu, as well as growing Kenya’s apparel manufacturing base with companies such as Hela, MAS, Best, Atraco, Royal, Simba, UAL, and Mega.
Our strategic interventions in the textile and apparels sub-sector have provided Kenya with a competitive advantage, attracting investors and growing the manufacturing base. This has not only led to increased exports, but also expanded job opportunities for factory workers and… pic.twitter.com/51iNtOVKiz
— William Samoei Ruto, PhD (@WilliamsRuto) April 23, 2024
“Finally, the investment is aimed at bringing new vertical capabilities to Kenya’s textile and apparel subsector, with the entry of companies like Kohinoor and Nexgen into the manufacture of elastics and labeling,” Ruto noted.
The president further mentioned that these companies have committed to match the USAID investment with a total of $77 million (Sh.10.3 billion), contributing to an expected generation of an additional $330 million in apparel exports and the creation of over 20,000 new jobs by the end of 2025.
The opening of the Nexgen Packaging EPZ factory brings the total number of apparel companies operating in Kenya’s Export Processing Zones to 39.
Nexgen Packaging operates in over 19 countries, providing packaging solutions for retail, apparel, and footwear industries, with a client base that includes Under Armour, New Balance, Ralph Lauren, J.Crew, and Kate Spade.
(Note: At the time of writing, $1 is equivalent to Sh. 133.50).
