Govt & World Bank pump in Sh538mn to revive cotton
09 Jun '06
1 min read
Government is mobilizing its efforts to revive cotton sector and has set aside Sh250 million for this financial year.
For sustaining preferential access to US market, Kenya along with 39 other beneficiaries of the African Growth and Opportunity Act ( Agoa ) have to create a strong base of raw materials for exporting textile products.
Several companies in the country had exported apparels valued Sh18 billion to the US from various Export Processing Zone (EPZ).
Kenya produced 40,000 bales of cotton last year, whereas Tanzania and Uganda produced 500,000 and 300,000 bales, respectively.
World Bank has agreed to provide a matching grant of Sh288 million to boost cotton output.
The cotton sub-sector has been facing difficulties since the late 80s because of lack of regulatory and legal framework to guard the textile industry from cheap imports, particularly second-hand clothes.
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