Kenya, a potential apparel sourcing hub

12 Jul '16

5 min read

Through its successful “Vijana na Equity” project, Equity Bank identified the potential of local fashion designers and tailoring units to create employment and generate income, thus promoting economic development in Kenya. However, this potential remains largely untapped due to systemic and structural weaknesses of the T&C industry, which, despite its rich history of over 100 years, remains fragmented, uncoordinated and misaligned. The sector is skewed towards cottage industries and low value-addition garment making, with an attendant steady decline in the textile sector.

“To unlock the full potential of the T&C sector with regards to creating jobs, generating incomes, strengthening trade, accelerating technology adoption, attracting investment, and promoting local entrepreneurship, most importantly women and youth entrepreneurs, there is an urgent need to recalibrate the growth strategy from low-value addition to high value-addition, enhancing Kenya's product offering from Cut, Make and Trim (CMT) to Full Package Service Providers (FPSP) and Original Design Manufacturing (ODM),” says the report.

The report lists 11 points as key challenges to unlocking the full potential of the T&C sector.

Among them are lack of policy coherence and institutional alignment, low level of value addition and a disconnect between the apparel sector and the rest of the value chain segments and supply side constraints with regards to quality and price of fabrics, with focus on afro-centric cloth and garments.

Weak business environment, high cost of production and built-in systemic inefficiencies, lack of market readiness and high cost and difficulties to access credit and finance are also seen as major challenges.

Despite these challenges, the report says the opportunities available to local designers and small tailors, including women entrepreneurs, are substantial on the domestic market as well as in the regional and global market space. “Designers can move out of the “made to measure” to “ready to wear” segment, and also join the mainstream industrial manufacturing to add value to Kenyan exports. They can also tap into the lucrative tourism and corporate wear markets. Small tailors can effectively develop their own networking cluster to avoid competing at the low-end of the market.”

But before Kenya can start on its global ambitions, it needs to modernise its textile machinery and equipment which are old and inefficient. It must also address the quality of yarn and fabrics produced in Kenya which is poor for the world market and mismatch of fabric supply to designers' needs and requirements and high production costs. (SH)

Fibre2Fashion News Desk – India

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