Money Markets
Recovering US economy presents hope for Kenya
Clothes for export. Policy makers should craft policies to enable investors to benefit from rebounding US economy. Photo/FILE
Posted Tuesday, November 3 2009 at 00:00
For the local textile industry, experts say global economic recovery cannot be relied on to change the sector’s fortunes.
They say the recession had only compounded the problem of an industry where the high cost of energy, dropping cotton reserves and a tepid official intervention policy were pushing to extinction of the sector.
The value of Kenya’s exports to the US have been declining from $277 million in 2004, to $270 million in 2005, $262 in 2006, $ 249 million in 2007 and $246 last year.
“Even with increased demand for textile and apparel products in the US market, our goods will still be locked out on the basis of prices if our energy costs remain between 250 – 300 per cent above the highly subsidised Asian products,” said Mr Bedi.
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