The textile and leather industry has a huge potential to transform Kenya’s economy and create jobs for millions of people, especially the youth. The global textile and apparel industry is a multi-trillion-dollar sector, valued at approximately $1.84 trillion in 2025. Today, apparel production is dominated by China and other Asia countries mainly because of the low labor costs. However, rising labor costs and US-China trade tensions are pushing the industry to evolve.
Kenya has a significant opportunity to capitalize on the shifts in the global textile and apparel industry. However, the country needs to address the challenges in the sector while leveraging its strategic location, existing infrastructure, and skilled workforce in order to benefit from these changes. In this article, I explore how Kenya can revitalize its textile and apparel industry, which would lead to job creation.
Status of the Industry
The textile and apparel industry is a critical component of Kenya’s economy, directly employing over 80,000 people and creating thousands of jobs in cotton farming. A distinctive feature of Kenya’s textile and apparel industry is the coexistence of locally manufactured apparel and secondhand clothes. The manufacturing segment primarily focuses on exports, particularly to the U.S. under the African Growth and Opportunity Act (AGOA). In 2024, Kenya’s apparel exports to the U.S reached approximately Ksh 60.6 billion ($470 million). The domestic market is dominated by the secondhand clothes (mitumba) trade, which provides jobs for approximately 2 million people.
Challenges and risks
However, the industry faces critical challenges.
Low cotton production: Domestic cotton production has reduced, forcing manufacturers to rely on imported raw materials, which increases costs.
Stiff competition: The sector also faces stiff competition from major global producers such as China, Vietnam, and Bangladesh.
Overreliance on the U.S. market: Currently, Kenya’s apparel industry is heavily reliant on the U.S. market under AGOA. The uncertainty surrounding the renewal of AGOA also poses a significant risk to investment and market access.
Imports of secondhand imports: The mitumba trade limits the growth of the cotton and apparel industry. While the trade provides jobs and affordable clothing, it stifles local manufacturing and generates environmental issues through the importation of synthetic waste.
Limited backward linkages: EPZs firms in the textile sector import raw materials, including yarn and fabric, from global markets, rather than sourcing them locally. A key challenge is that the local upstream cotton and textile industry cannot provide apparel manufacturers with quality and adequate materials like yarns and fabrics.
Focus on the Cut, Make and Trim (CMT) model: The product offering in Kenya’s textile and apparel industry mainly focuses on the Cut, Make, and Trim (CMT) model. In this model, the client (often a foreign buyer or brand) provides all the necessary raw materials, like fabric, patterns, and trims. The manufacturer is dependent on the brand for sourcing, potentially limiting the opportunity to develop linkages with material suppliers.
Opportunities
Despite the challenges, the industry also presents significant opportunities for growth.
Expanding domestic and regional markets: Kenya’s youthful population and a growing middle class offer a substantial domestic market for locally produced garments. Moreover, the country has access to regional markets such as the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA).
Young population: The country has a large and youthful population with a high literacy rate and English fluency, providing a skilled and productive workforce for the labor-intensive textile and apparel sector
Sustainable Fashion: The global demand for eco-friendly and sustainable fashion presents a significant opportunity. Kenyan textile mills and apparel firms can leverage this trend by adopting eco-friendly practices and ethical manufacturing
Conclusions and Recommendations
Kenya’s textile and apparel industry holds significant potential for economic transformation and job creation. Revitalizing this industry would create the much-needed jobs for our young people while expanding our economy. However, the industry faces challenges that limit its growth and contribution to the country’s GDP. Here are some recommendations to unlock the full potential of the industry.
- Promote increased adoption of cotton farming across the country by providing high-quality cotton seeds and subsidies to cotton farmers.
- Replace outdated and harmful cash crops such as Khat and tobacco with cotton, to ensure a stable and affordable supply of domestic raw materials.
- Move beyond the reliance on AGOA and instead, focus on local production and take aim at domestic and regional markets. Kenya should aim to be the factory of Africa.
- Shift from the Cut, Make, and Trim (CMT) into Original Design Manufacturing, and Full Package Service Providers.
- Offer incentives for local industries to improve the quality of raw materials such as yarns and fabrics to promote their use in EPZ apparel manufacturers.
- Investing and expanding the energy infrastructure to ensure an affordable and stable energy supply, thereby enhancing the competitiveness of Kenya’s textile and apparel manufacturing sector.
- Providing training and upskilling services to equip existing workers with modern, market-relevant skills.
- Build a robust direct-to-consumer (D2C) cross-border e-commerce ecosystem to increase market access for Kenyan textile mills and apparel manufacturers.
Related: Breaking the Stagnation: Reviving Kenya’s Manufacturing Sector
