Kenya’s apparel and textile industry is on the rise. It is one of the leading players in Africa’s manufacturing landscape. Over the past decade, government support, favorable trade agreements, and increased sustainability efforts have fueled consistent growth. This article explores the industry’s current state and growth potential and discusses the challenges it faces in becoming a global textile hub.

The apparel and textile sector in Kenya is undergoing a revival. Once a significant player in the African textile market, Kenya’s industry faced near collapse in the late 20th century due to structural issues. However, it is now witnessing a resurgence, driven by policy support and global trade agreements like the African Growth and Opportunity Act (AGOA)​. Today, the sector accounts for 6% of total exports, with apparel alone contributing $444 million in 2022​. The potential for growth remains significant as the industry continues to attract local and foreign investments.

Kenya’s textile industry has deep roots, dating back to the 1970s and 80s, when it was a dominant sector. However, mismanagement and external competition led to its decline in the 1990s. The revival began in the early 2000s with AGOA, which granted Kenya duty-free access to U.S. markets​. This agreement boosted the country’s textile exports, primarily through the Export Processing Zones (EPZs), now employing over 40,000 people​. Significant players like United Aryan, Hela Apparel, and Bedi Investments have set up shop in Kenya, transforming the industry’s structure and output​.

Kenya’s textile and apparel sector is witnessing robust growth, driven by several factors:

1. Government Support and Policy Initiatives

The Kenyan government has prioritized the textile industry in its Vision 2030 plan to boost employment and industrial growth​. The introduction of policies to support locally made products and facilitate compliance with global standards has had a direct impact on competitiveness. The partnership between the Kenya Association of Manufacturers (KAM) and organizations like IDH aims to drive competitiveness through sustainability programs​.

2. Trade Agreements and Export Growth

AGOA remains a cornerstone of Kenya’s apparel success. In 2022, Kenya exported over $400 million of apparel to the U.S. alone​. With the projection that apparel exports to the U.S. and Europe will double by 2025, the industry is set to become a key foreign exchange earner​. Kenya’s strategic location along the Indian Ocean and proximity to major shipping routes enhance its appeal to global buyers.

3. Sustainability and Ethical Production

Sustainability is becoming central to Kenya’s textile manufacturing. The industry increasingly aligns with global environmental, social, and governance (ESG) frameworks, especially with 85% of the country’s energy now derived from renewable sources. This positions Kenya as an attractive destination for ethically conscious fashion brands seeking sustainable sourcing options.

Kenya’s apparel and textile industry is primed for further expansion, with several growth opportunities available.

1. Expanding Export Markets

As Kenya strengthens its trade relations with the U.S. and Europe, its market access has grown significantly. By 2025, Kenya’s textile exports to these regions are expected to double, with more brands sourcing from the country​. In addition, the demand for eco-friendly and sustainable fashion is growing. This gives Kenyan manufacturers a chance to adopt green practices in their operations.

2. Tapping into High-Value Market Segments

Kenya is ready to enter high-value parts of the global textile market. Technical textiles, eco-friendly garments, and athleisure wear are some niche markets offering significant potential​. The government and authorities promote cotton farming and encourage value addition to textile products. It will strengthen Kenya’s position in these high-demand sectors.

3. Competitive Advantages

Kenya enjoys several competitive advantages, including its skilled labor force, strategic location, and fully integrated supply chains​. The Export Processing Zones provide incentives such as tax breaks and reduced regulatory hurdles, making Kenya an attractive destination for investors looking for efficient production bases in Africa​.

Despite its growth, Kenya’s apparel and textile industry faces several challenges that could hinder its potential.

1. Cotton Production Deficits

One of the most significant obstacles is the limited domestic production of cotton. While demand for raw cotton has grown, domestic supply has not kept pace. Therefore, manufacturers rely on imports from neighboring countries, such as Uganda and Tanzania. This supply chain inefficiency raises production costs and reduces competitiveness.

2. The Mitumba Dilemma

The proliferation of second-hand clothing, or “mitumba,” poses another challenge. These inexpensive garments flood the market, making it harder for local manufacturers to compete in the domestic market​. While Mitumba provides affordable clothing options for many Kenyans, it has been cited as a significant barrier to the growth of the local textile industry.

3. Compliance with International Standards

Many Kenyan textile firms face challenges in meeting international quality and sustainability standards​. To penetrate lucrative markets such as Europe and the U.S., manufacturers need to consistently comply with strict labor and environmental regulations. Enhancing compliance capacity is essential for long-term growth in global markets.

Kenya’s apparel and textile sector is on the path to becoming a significant global player.

1. Government Vision and Support

The Kenyan government’s Vision 2030 targets industrialization, with textiles playing a pivotal role in achieving this goal​. Policies aimed at boosting cotton production and expanding value addition will strengthen the industry’s foundation. Plans to increase textile exports to over $2 billion by 2030 are already in motion​.

2. Sustainability as a Key Differentiator

Kenya’s growing focus on sustainability will be critical to its future success. As brands and consumers prioritize ethical production, Kenya’s reliance on green energy and commitment to ESG principles will help it stand out in the global market​. This emphasis on sustainability could also open doors to new market segments and partnerships.

3. Job Creation and Economic Impact

The sector is projected to create hundreds of thousands of new jobs by 2030, and its economic impact is expected to be profound​. The textile industry drives employment and offers opportunities for skills development and technological advancements, further contributing to Kenya’s overall industrial growth.

Kenya’s apparel and textile industry is weaving a success story driven by government support and trade agreements. Sustainability efforts also play a crucial role in its success. While challenges like cotton production and competition from second-hand clothing remain, the future looks promising. With suitable investments and policies, Kenya will soon become a key player in the global textile market. The industry will significantly contribute to economic growth and job creation.