High costs push Kenya’s textile industry to collapse
Kenya’s textile manufacturing industry has so far been one of the fastest-growing sectors of the economy. However, it is facing competitive pressure in major export markets and thousands of workers have lost their jobs. Analysts believe that this will take several years. recover.
Data from the Kenya Apparel Manufacturers and Exporters Association (KAMEA) show that nearly three-quarters of workers in the textile industry have lost their jobs after 21 factories closed down. Four years ago, Kenya had 36 factories employing more than 32,000 people.
Industry insiders say that one-third of the remaining 15 factories are under pressure and may close before the end of this year, resulting in an equal proportion of the remaining 12,000 workers losing their jobs.
The recent abolition of transit hubs for international fabric and apparel trade under trade group regulations has made it more difficult for Kenyan exporters to enter the U.S. market, unable to compete with low-cost producers such as China that ship via sea. .
Official statistics show that Kenyan clothing sales to the United States dropped from US$263 million in 2005 to US$150 million in 2019, bringing a gloomy future to Kenya’s clothing industry.
Bedi attributed this drop in sales to the steady decline in prices, which has reduced the overall value of the textile industry.
The 2019 Economic Survey shows that in 2007, the textile sector grew by only 1.8%, and the cotton woven fabric manufacturing sector increased by 10%, from 8.4 million square meters to 9.3 million square meters.
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