The garment manufacturing industry in Kenya has expanded its utilization of raw materials to produce high-quality exportable products. This is exemplified by the recent opening of Nexgen Packaging Kenya, EPZ Limited, a new apparel brand identification and packaging factory located in Athi River, Machakos County.
The apparel sector is poised for significant expansion with the addition of Nexgen Packaging EPZ as the 39th company in Kenya’s Export Processing Zone, further enhancing the clothing and textile industry.
The inauguration of a new package factory equipped with state-of-the-art machinery was attended by several dignitaries including the President, H.E. William Ruto, U.S. Ambassador Meg Whitman, USAID Mission Director David Gosney, Prosper Africa Coordinator British Robinson, Machakos County Governor H.E. Wavinya Ndeti, and Cabinet Secretary for the Ministry of Investment, Trade, and Industry Hon. Rebecca Miano.
The textile and apparel industry is seen as a driving force for industrial growth, increasing GDP through product exports and boosting agricultural production. The impact of this industry on Kenya’s GDP is evident, with around 60,000 individuals employed in the sector and exports reaching $545 million in 2022, projected to rise to over $7 billion in garment exports to the US duty-free.
President William Ruto has emphasized the importance of agriculture and manufacturing in strengthening the economy through the Bottom-up Economic Transformation Agenda (BETA). To support this, five industrial parks have been identified and established within the country to accelerate these goals.
USAID’s support has been instrumental in solidifying Kenya’s position as the leading garment exporter to the US from Africa under the Africa Growth and Opportunity Act (AGOA). AGOA allows eligible sub-Saharan African countries duty-free access to the U.S. market for over 1,800 products, complementing the Generalized System of Preferences program.
USAID’s investment is expected to create about 20,000 new jobs in Kenya’s textile and apparel sector, with $67 million allocated for this purpose. These investments aim to enhance vertical integration in product exports, particularly with Nexgen Packaging Kenya.
U.S. Ambassador Meg Whitman highlighted that these investments are geared towards advancing economic prosperity targets between the U.S. and Kenya, creating quality jobs for Kenyans, and strengthening economic ties between the two nations. She emphasized that USAID’s investments are focused on promoting Kenyan prosperity through collaboration with the United States.
“Nexgen is a significance of the burgeoning witnessed in the apparel business within Kenya. This is an industry with skills, innovativeness, and evident determination in meeting global demand as shown through sales on a global scale,” said Ambassador Whitman.
Emboldening of the Cotton Farming Ventures
President William Ruto revealed that the country is once again revamping the cotton farming sector aiming at empowering the farmer as well as providing job opportunities across the whole value chain of the apparel industry.
The garment manufacturing industry is aimed at propelling further growth, and development and addressing issues of unemployment as anticipated with more growth by 2027.
Revealing that the country managed to do farming of 10,000 acres of cotton which rose to farming 40,000 acres in 2023 with 2024 aimed at further increasing the acres tilled for cotton production to 103,000 acres.
As forty thousand farmers are already farming cotton and producing up to 20, 000 to 40,000 bales annually which has the potential to increase acreage under production to achieve at least 260,000 bales annually.
The President mentioned that the youthful population in Kenya is well-educated, tech-savvy, and highly skilled, and is renowned for their motivation, drive, innovation, and entrepreneurship. Investors will not need to outsource manpower due to the same.
This success, the president points out, is enough motivation for a continued investment in the young people and a capable solution to the unemployment puzzle that the country is faced with. Revealing an investment of up to 3 billion Ksh for setting up the special economic zones within the country that will further open more opportunities for the labor market to achieve more than 100,000 jobs for young people.
Commending the fourteen Kenyan apparel and textile businesses that have received direct support from the United States for showcasing the determination, creativity, and focus that the labor market in Kenya possesses.
The Fourteen garment manufacturing ventures include Nexgen Packaging EPZ Limited, Hela Intimates EPZ Limited, Vivo Fashion Group Limited, MAS Holdings PVT Limited, Best Lifestyles Kenya EPZ Limited, United Aryan EPZ Limited, JF&I Packaging Kenya EPZ Limited, Kohinoor Elastic Kenya EPZ Limited, Ikwetta Holdings Limited, Ashton Mombasa Apparel EPZ Limited, Ubuntu Life, and Mega Apparel Industries EPZ Limited.
