Kenya projects Ksh.133B textile exports by 2027: Ruto

Kenya expects to produce over $1 billion (Ksh. 133 billion) in textile and apparel exports by 2027, President William Ruto said on Tuesday, citing current potential and investment growth.

“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 said while commissioning the Nexgen Packaging factory at the Athi River Export Processing Zone (EPZ) in Machakos County.

He said Kenya’s EPZ network has expanded to 101 gazetted zones in 22 counties, accounting for Ksh.149 billion in cumulative investment and direct employment to over 75,000 people.

“Of this, the textile and apparel sub-sector constitutes over 100 companies which employ over 66,000 people directly, and between 150,000 and 200,000 indirectly,” Ruto said.

Kenya’s apparel exports currently stand at about Ksh.51 billion, according to a Kenya Association of Manufacturers (KAM) report.

The country is the largest exporter of garments under the African Growth and Opportunity Act (AGOA) program, with the United States being the largest export destination of Kenya’s apparel.

Kenya is one of the global suppliers of big fashion brands in America such as H&M, Levi’s, JC Penny and Wrangler.

Ruto on Tuesday said the U.S. through USAID had invested over $11 million (Ksh.1.47 billion) in grants to create jobs, increase trade, and strengthen Kenya’s textile and apparel sector.

“The investment is aimed at expanding the promising Kenyan fashion brands like Vivo, Ikwetta, and Ubuntu. Secondly, the investment is intended to grow Kenya's apparel manufacturing base in conjunction with companies like Hela, MAS, Best, Atraco, Royal, Simba, UAL, and Mega,” he said.

“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 labelling.”

The president said these companies have additionally committed to match the investment with a $77 million (Ksh.10.3 billion) total investment.

“This combined effort will be expected to generate an additional $330 million in apparel exports and create over 20,000 new jobs by the end of 2025,” said Ruto.

The opening of Nexgen Packaging EPZ factory adds to the 39 apparel companies currently based in Kenya’s Export Processing Zones.

Located in over 19 countries globally, Nexgen Packaging provides packaging for retail, apparel, and footwear industries.

The company produces garments for top fashion names such as the Under Armour sportswear brand, New Balance, Ralph Lauren, J.Crew and Kate Spade.