The Cotton and Textile Industry in Kenya: From Colonial Legacy to Industrial Revival

Kenya's cotton and textile industry occupies a pivotal position in the country's industrialization ambitions, representing one of the most significant opportunities for job creation, import substitution, and value-added manufacturing. With roots stretching back to the colonial era, the sector has experienced dramatic cycles of growth, decline, and attempted revival over the past century. Today, the industry stands at a critical crossroads as the government pursues an ambitious strategy to transform Kenya into a regional textile manufacturing hub, expand employment from 50,000 to 500,000 workers, and potentially triple exports to $2 billion by 2030.

Historical Development of Kenya's Cotton and Textile Sector

Cotton cultivation in Kenya began during the British colonial period in the early 1900s, when the crop was introduced as a cash commodity alongside coffee and tea. By the 1960s and 1970s, the newly independent nation had developed a thriving cotton belt spanning western Kenya, the Nyanza region, and parts of the Coast and Eastern provinces. At its peak in the mid-1980s, Kenya produced over 70,000 bales of lint cotton annually, supporting hundreds of thousands of smallholder farmers and feeding a network of ginneries and textile mills that formed the backbone of the country's nascent manufacturing sector.

The sector's golden era saw major textile mills operating across the country, including Rivatex in Eldoret, Kisumu Cotton Mills (KICOMI), Mountex in Mount Kenya region, and several others that collectively employed tens of thousands of workers. These mills processed locally grown cotton into yarn, fabric, and finished garments, creating an integrated domestic value chain that generated substantial economic activity in both rural farming communities and urban manufacturing centres.

However, the liberalization policies of the 1990s—implemented under World Bank and IMF structural adjustment programmes—devastated the industry. The removal of import tariffs exposed Kenyan manufacturers to competition from cheap imported textiles, particularly second-hand clothing (known locally as mitumba) from Europe and North America. Within a decade, most of Kenya's textile mills had closed, cotton production collapsed to below 20,000 bales annually, and the sector lost an estimated 200,000 jobs.

Current State of Cotton Production

Kenya's cotton farming sector remains a fraction of its former capacity, though recent government interventions are beginning to show results. As of 2024, the government has set the minimum price for seed cotton at KES 72 per kilogram, a significant increase designed to incentivize farmers to return to the crop. The country's 15 yarn-spinning mills have an estimated capacity of 148,000 spindles, but they operate at only 40 to 50 per cent capacity due to low productivity and heavy reliance on imported yarn, which reached 103,586 bales in 2023.

Currently, approximately 80 per cent of Kenya's cotton supply is imported, primarily from Tanzania, Uganda, and international markets. This dependency on imported raw materials represents both a challenge and an opportunity—if Kenya can revive domestic cotton production, it would dramatically reduce costs for local manufacturers while creating hundreds of thousands of farming jobs in rural areas. The Agriculture and Food Authority (AFA) oversees cotton farming regulation, working with county governments to distribute certified seeds and provide extension services to farmers.

Cotton is grown across approximately 20 counties in Kenya, with the major producing regions including Busia, Siaya, Homa Bay, Tana River, Kitui, Makueni, and Kwale. The crop is particularly suited to the semi-arid and sub-humid areas where alternative cash crops perform poorly, making it a vital livelihood option for smallholder farmers in these regions. The government's revival strategy targets increasing production to at least 200,000 bales annually within the next decade.

The Textile and Apparel Manufacturing Landscape

Kenya's textile and apparel manufacturing sector has evolved into two distinct segments: the export-oriented garment industry operating primarily within Export Processing Zones (EPZs), and the domestic-focused textile manufacturing sector. The EPZ garment firms directly employed approximately 50,000 workers in 2021, making apparel the single largest industrial employer in the zones. Including indirect employment in logistics, ancillary services, and cotton farming, over 150,000 Kenyan livelihoods depend on the textile-apparel export chain.

The Export Processing Zones Authority (EPZA) hosts numerous garment manufacturers producing primarily for the US and European markets. Major EPZ locations include Athi River, Ruaraka in Nairobi, and various facilities across Mombasa and Nakuru. These factories produce a range of products from basic t-shirts and uniforms to more complex items like trousers, jackets, and athletic wear for global brands.

Textile exports have shown encouraging growth, fluctuating between 9,000 and 18,000 units from 2015 to 2022 before rising significantly to 33,536 units in 2023. Total textile and apparel exports reached approximately $628 million in 2024, positioning Kenya as one of sub-Saharan Africa's leading garment exporters alongside Ethiopia, Lesotho, and Madagascar.

AGOA and International Trade Access

The African Growth and Opportunity Act (AGOA) has been the single most important driver of Kenya's garment export industry for over two decades. This US trade legislation provides duty-free access to the American market for eligible African countries, and Kenya's textile sector has been one of its primary beneficiaries. Under AGOA's third-country fabric provision, Kenyan manufacturers can source fabric from anywhere in the world—including Asia—while still qualifying for duty-free treatment when exporting finished garments to the United States.

While AGOA did spur some revival of cotton farming and ginning domestically, the scale was insufficient to fully feed the export industry. The uncertainty surrounding AGOA's periodic reauthorizations creates significant planning challenges for manufacturers making long-term investment decisions. The current authorization expires in 2025, and its renewal or replacement will have profound implications for Kenya's 50,000 EPZ garment workers and the broader textile ecosystem.

Beyond AGOA, Kenya benefits from trade preferences under the East African Community (EAC) common market, the African Continental Free Trade Area (AfCFTA), and the Economic Partnership Agreement (EPA) with the European Union. These agreements provide expanded market access and are increasingly important as Kenya diversifies its export destinations beyond the traditional US market.

Government Revival Strategy and Policy Framework

The Kenyan government has adopted a comprehensive Cotton, Textile, and Apparel (CTA) Policy under the Bottom-Up Transformation Agenda (BETA), which takes a value chain approach to sector revival. Released in draft form in November 2024, the policy brings together national and county governments, private sector stakeholders, cotton growers, and ginners to address the systemic challenges that have held the industry back for decades.

Key elements of the revival strategy include ensuring certified seed availability and distribution, increasing farm-gate prices to boost farmer incomes, rehabilitating dormant ginneries and textile mills, and investing in skills development for the manufacturing workforce. The Ministry of Investments, Trade and Industry aims to expand industry employment from 50,000 to 500,000 over the next five years—an ambitious target that would make textiles one of Kenya's largest employers.

The revival of Rivatex East Africa Limited in Eldoret stands as a flagship example of the government's commitment. After years of dormancy, the mill was revived through a partnership between the national government and Moi University, and it now produces fabric, yarn, and finished products while also serving as a training facility for the next generation of textile professionals. Similar revival efforts are underway for other formerly productive mills across western Kenya and the Nyanza region.

Challenges Facing the Industry

Despite the optimistic policy framework, Kenya's cotton and textile industry faces formidable challenges. The mitumba second-hand clothing trade remains one of the biggest obstacles, with imports worth hundreds of millions of dollars annually flooding the domestic market and suppressing demand for locally manufactured garments. While EAC member states have periodically discussed banning second-hand clothing imports, implementation has proven politically and practically difficult given the livelihoods that depend on the trade.

Infrastructure deficits significantly increase manufacturing costs. Unreliable electricity supply forces many factories to maintain expensive backup generators, while poor road networks increase transportation costs for both raw materials and finished goods. Water availability is another critical constraint, as textile finishing processes are water-intensive and many manufacturing areas face chronic shortages.

Competition from Asian manufacturers—particularly those in Bangladesh, Vietnam, and China—remains intense. These countries benefit from massive economies of scale, lower labour costs in some cases, and well-developed supply chain ecosystems. For Kenya to compete effectively, it must leverage its strategic advantages including geographic proximity to European markets, AGOA access, a young and trainable workforce, and growing regional integration under the AfCFTA.

Green Transitions and Sustainability

An emerging dimension of Kenya's textile sector is the push toward sustainable and environmentally responsible manufacturing. Research published in Frontiers in Sustainability in 2025 has examined the challenges and opportunities for green transitions in Kenya's textile manufacturing industry, highlighting the potential for the sector to adopt cleaner production methods, reduce water and energy consumption, and minimize textile waste.

Kenya's position as a relatively new entrant in large-scale textile manufacturing gives it an advantage in adopting modern, sustainable technologies from the outset rather than retrofitting older, more polluting equipment. The growing global demand for ethically and sustainably produced garments could position Kenyan manufacturers favourably with environmentally conscious international buyers, particularly in Europe where regulations around textile sustainability are tightening.

The Path Forward: Opportunities and Projections

If Kenya can successfully execute its revival strategy and replace even a portion of its textile imports while upgrading production capacity, projections suggest exports could triple to $2 billion by 2030, up from $628 million in 2024. The industry directly employs 21,000 people in the formal sector and over 30,000 in the informal sector, with the potential to grow exponentially as the value chain develops.

Investment in skills development through institutions like the Kenya Textile Training Institute and technical training colleges is critical for building the workforce capacity needed to support expansion. Similarly, strengthening the research and development ecosystem—including cotton breeding programmes adapted to Kenyan conditions—will be essential for improving yields and fibre quality.

The cotton and textile industry represents perhaps Kenya's greatest manufacturing opportunity. With the right combination of policy support, investment, and market access, the sector has the potential to transform rural livelihoods, create hundreds of thousands of jobs, and position Kenya as Africa's premier textile manufacturing destination. The journey from colonial cash crop to modern industrial powerhouse is far from complete, but the foundations for a genuine revival are finally being put in place.