Home / Knowledge / News / Apparel/Garments / Kenyan EPZ firms want power, labour cost cuts

Kenyan EPZ firms want power, labour cost cuts

02
Jul '19
Kenyan EPZ firms want power, labour cost cuts
Firms in Kenyan export processing zones (EPZ) want lower labour and electricity costs and slashed work permit fees for expatriates to boost earnings from the US Africa Growth and Opportunity Act (AGOA). EPZs are held back by their inability to attract investors who prefer neighbouring nations, Kenya Export Manufacturers Association (KEMA) vice chairman Thomas Puthoor said.

Kenya’s competitors like Ethiopia and Madagascar have attracted more investors after lowering electricity costs and expatriate permit fees, he said.

KEMA also complained of high wages in Kenya that Puthoor rated at an average minimum of Sh22,000 compared to Ethiopia and Madagascar at Sh6,000 and Sh8,000 respectively, according to a report in a Kenyan newspaper.

Most workers in EPZs work for apparel enterprises, with recent Kenya National Bureau of Statistics (KNBS) data indicating that 22 clothes firms employ 46,248 Kenyans.

Mr Puthoor, who is also Simba Apparel EPZ managing director, said despite having more than 6,000 items trading under AGOA, Kenya is only exporting apparels, horticulture and processed food, which is an under-investment in the sector.

He also asked the government to reorganise the market for citizens to buy the locally manufactured clothes.

Though the ‘Buy Kenya, Build Kenya’ concept started well, its promotion has ceased in the past one year, and yet more than 20 per cent of our produce were set aside for the local market. Clothes manufactured in the country are of better quality compared to imported second-hand clothes, he added. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 20th Sep 2021

Turkmenistan, Uzbekistan agree to raise trade turnover to $1 bn

Uzbekistan and Turkmenistan recently agreed to raise bilateral trade...

Pic: Shutterstock

Textiles | On 20th Sep 2021

MPs, peers call on UK govt to ban fur sales & imports

Over 100 cross-party members of Parliament (MPs) and peers have...

Pic: Canopy Planet

Apparel/Garments | On 20th Sep 2021

Over 400 brands now part of Canadian organisation Canopy's initiatives

Canopy has announced that over four hundred brands and retailers are...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Quality & affordability to affect market acceptability of new fibres

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Vandana Narang, National Institute of Fashion Technology

Vandana Narang
National Institute of Fashion Technology

Campus placements are low due to lockdowns

Dhruv Toshniwal & Udit Toshniwal,

Dhruv Toshniwal & Udit Toshniwal

Launched a year ago, Fashions Pvt Limited conceptualises and sees D2C...

Shivendra Nigam,

Shivendra Nigam

Delhi-headquartered Cantabil Retail India Ltd was founded by Vijay Bansal...

C Maennich,

C Maennich

Trützschler, one of the world's leading textile machinery manufacturers,...

Seth Casden, Hologenix

Seth Casden
Hologenix

Hologenix is a material sciences company dedicated to developing products...

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Dr Anup Rakshit, ITTA

Dr Anup Rakshit
ITTA

The Indian Technical Textile Association (ITTA) is the only association of ...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

Designer <b>Suman Nathwani</b> talks about her journey of opening a...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


September 2021

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


Advanced Search