Home / Knowledge / News / Apparel/Garments / Delay in AGOA-rule extension effects Kenyan garment sector
Delay in AGOA-rule extension effects Kenyan garment sector
May '13
The delay in the extension of third country fabric provision under the African Growth and Opportunity Act (AGOA), which was due to expire in September last year, has led to contraction of direct employment in Kenyan garment sector, says ‘Economic Survey 2013’ released by the Ministry of Devolution and Planning.
The survey notes that capital investment in Kenya’s textile and apparel sector too decreased for the second consecutive year, last year.
As doubts regarding extension of the third country fabric rule kept the risk-wary investors away from accepting long-term financial commitments in the Kenyan clothing sector, it deprived the sector of Sh 647 million of capital investments during last year.
AGOA’s third country fabric rule, which authorise countries like Kenya to export items prepared from imported raw material to the US either duty-free, quota-free or on preferential basis, was due for expiry on September 30, 2012. 
Following reservations, capital investments in the Kenyan clothing sector contracted by 9.4 percent to Sh 6.2 billion, as compared to Sh 6.9 billion in 2011, the survey said.
The strength of workers at garment and apparel units of the Export Processing Zones (EPZ) also reduced by 5.4 percent from 25,169 workers in 2011 to 23,811 in 2012, Business Daily reported quoting the survey.
For countries like Kenya, which do not produce raw materials in adequate quantities, required for boosting exports of final products, the loss of AGOA third-country provision would have resulted in downfall of the garment sector, which generated export revenues worth Sh 23.3 billion last year.
The US Congress gave its nod for extension of the provision till September 2015 on August 2, 2012, bringing a sigh of relief to the Kenyan garment sector.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Stone Island

Apparel/Garments | On 25th Jun 2018

Stone Island has mastered ingredient branding: Braind

Italian high-end men's apparel brand Stone Island tops the list of...

Courtesy: Tecnorama

Textiles | On 25th Jun 2018

'Tecnorama automatic dyeing system offers efficiency'

Italy based Tecnorama’s fully-automatic machinery for dispensing...

Courtesy: Pantone

Textiles | On 25th Jun 2018

Pantone unveils polyester standards

Pantone, provider of professional colour standards for the design...

Interviews View All

Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Textile & apparel industry

GST is a complicated and lengthy process

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Urmil Arya

Sushila International, a well established textile organisation established ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search