In collaboration with Thika Clothing, the Government of Kenya has launched a KES 1.2 billion Cotton Ginning and Oil Extraction Factory at Lamu Port, a significant milestone under the Bottom-Up Economic Transformation Agenda (BETA).
The move aims to develop value chains that will spur employment opportunities and foresee the growth of the value chains at diverse levels, benefiting the people and aiding a boost in the economy.
The stride toward having a fully developed supply chain means a reduction in imports of second-hand clothes, which has raised conflicting questions about pollution and development.
The groundbreaking ceremony was led by Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui, and attended by Lamu Governor H.E. Issa Timamy, development finance institutions, and senior government officials.
“What we are launching today is more than a factory; it is a bold signal of Kenya’s industrial future,” said Hon. Kinyanjui.
Located along the LAPSSET Corridor, the factory is designed to unlock Lamu’s industrial potential and attract further investments in agro-processing, logistics, and the blue economy.
The ginnery, established by Thika Clothing Factory, will boost cotton uptake, thereby increasing farmers’ incomes, creating jobs, and providing raw materials for the textile industry.
As part of the initiative, 80,000 cotton seeds will be distributed to farmers to support increased production and sustainability in the sector.
“Let Lamu become a benchmark for county-based industrial transformation,” Kinyanjui added. “Let this investment revive local production, create dignified jobs, and rebuild domestic value chains.”
With a processing capacity of up to 20 million kilograms of cotton annually, the facility will source raw materials from local farmers through structured contract farming. This will ensure predictable incomes, consistent supply, and cooperative-led value chain development.
“This is a major boost for cotton farmers and cooperative societies in the coastal region,” said Principal Secretary for Investment Promotion, Mr. Abubakar Hassan. “It guarantees structured markets and stable incomes while strengthening cooperative economies.”
The Kenya Development Corporation (KDC), under the Ministry of Investments, Trade and Industry, is providing critical support by facilitating long-term and working capital, and coordinating machinery acquisition through the Exim Bank of India.
“KDC is proud to catalyze this transformative investment,” said KDC Director, Mr. Benjamin Muketha. “Our role is to finance aspirations, nurture industries, and drive inclusive prosperity in regions like Lamu.”
KDC’s involvement reflects its wider mandate to promote economic development through strategic financing and advisory support for both large enterprises and SMEs.
The factory is expected to create over 300 direct and indirect jobs, with a focus on empowering women and youth. It also includes technology transfer and capacity-building programs to enhance local expertise in textile processing and value addition.
“This factory will produce not just garments or oil, but economic opportunity,” Muketha added. “It will position Lamu as a competitive player in Kenya’s value-added supply chains, from cotton to textiles, agriculture to exports.”
The government views this public-private partnership as a model for locally driven, globally competitive industrialization. It also aligns with Kenya’s strategic ambitions under the African Continental Free Trade Area (AfCFTA) and other trade frameworks.
“We must continue to work together to unlock Kenya’s full industrial potential,” Kinyanjui concluded. “Partnerships like this are the engine of long-term transformation.”
This investment marks a new era for Lamu and the coastal region, one defined by productive industry, decent jobs, and sustainable growth.
