The Kenyan textile industry in a liberalized economy : an analysis of performance and challenges

Abstract

With the Kenyan textile industry being one of the most important contributors to industrial development, liberalization of the country's economy in the early 90's resulted in great competition from imported clothing leading to closure of some textile industries. Firms that had been exporting under the African Growth and Opportunity Act (AGOA) were threatened by increased volume in exports from Asia. Though rated 3rd after Madagascar and Lesotho, with 20.7% of total African apparel exports to the US; Kenya's textile industry's development was hampered by manpower underdevelopment, high cost of production, competition both in the local and international markets, consumer preference for imported textiles and corruption. The purpose of this study was to address these crucial issues that hinder the Kenyan industry from flourishing globally. Using both primary and secondary data, this study analyses the performance of the local textile industry in a liberalized economy; focusing on an overview of the industry before and after liberalization, the industry under AGOA and challenges resulting from liberalization. Significantly, government support through reduction of operation costs and review of training courses in relevant institutions to meet industry needs and increase human development and training are important in increasing the industry's performance.

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