This archive report was first published on 19 May 2020.
Apparel Firms Ride on Corona Battle ¶
Kenya's apparel sector has been revitalized in recent months, thanks to the COVID-19 pandemic. The government's efforts to boost the sector have been given a significant boost as firms in the Export Processing Zones (EPZ) have switched to producing face masks and personal protective equipment.
According to the EPZ Chairman, Paul Gicheru, the sector has seen a significant increase in production, with 16 companies now producing 639,700 masks and 106,000 personal protective equipment every day. This is a far cry from the few months ago when these firms were solely producing garments for export.
Revital Health Care is producing 180,000 face masks a day, while New Wide Garments and Hela Intimates are making 100,000 masks a day. The success of turning EPZ into tailoring shops for masks and protective equipment has given the government reason to dream big in terms of expanding the apparel sector.
President Kenyatta launched a hygiene programme in April, which aims to produce face masks in 23 informal settlements across seven counties. The programme has the potential to create employment opportunities and stimulate the local economy.
The government has also announced plans to provide incentives to textile firms and SMEs to make products even after the COVID-19 pandemic is contained. This includes activating micro, small and medium enterprises across the country to manufacture basic medical equipment and supplies for domestic use and export.
According to a 2015 McKinsey report, Kenya, Ethiopia, Kenya, Tanzania, and Uganda have the potential to trade goods worth Sh300 billion in garments and apparel by 2025. However, in 2016, East Africa exported only Sh18 billion in apparel, highlighting the need for the sector to be revitalized.
Kenya Private Sector Alliance (Kepsa) says technology will be key in upping the apparel sector game. CEO Phyllis Wakiaga says: 'Demand for cotton at a regional level is large; textile mills could be established to sell domestically, regionally and perhaps, in time, internationally. If Kenya brings in technology to support the vertical supply chain, there's potential to attract domestic and international investment.'
Industrialisation CS Betty Maina says the government has always had a strategy for industrialization, but the COVID-19 pandemic has given them an impetus to implement it. 'This includes a range of actions to boost production by SMEs and financing them and expand markets by accelerating the buy Kenya build Kenya initiatives to create local demand and supporting them to export.'
