Workers at a textile firm based at the Export Processing Zone, Athi River. Up to 93 per cent of textile products consumed locally are imports. File
Textile firms have launched a fresh bid for a bigger chunk of public tenders in a campaign that also proposes higher taxes on imported second-hand fabrics.
The proposals are part of internal housekeeping measures which local industry players pledged last year to secure extension of the third country fabric rule that allows them to export garments made of imported material to the US ahead of this year’s African Growth and Opportunity Act (Agoa) forum.
“By reducing imports and raising the consumption level of local textile products to 20 per cent, we expect a major impact in terms of job creation,” African Cotton and Textile Industries Federation (Actif) executive director Rajeev Arora said in Nairobi Monday.
The 2013 Agoa forum will be held in Addis Ababa in August amid concerns that not enough has been done to convince top US government officials to make Agoa permanent. “The 12th Agoa forum should serve as a timeline where eligible countries give a clear message to the US administration and Congress on the need to extend the trade window as soon as possible,” said East African Community, Commerce and Tourism secretary Phyllis Kandie.
US government officials see strengthening the whole value chain — from farm to factories — as one way of achieving Agoa’s goal of boosting job creation and fighting poverty.
The free-trade window allows Kenya to export over 6,000 product lines to the US, but the country has mere managed 20 lines.
Mrs Kandie said the committee, put together two years ago to popularise Agoa, had already conducted awareness drives in Kisumu, Malindi and Embu counties.
Textile products — sustained by imported garments —have dominated Kenya-US exports since Agoa laws were enacted more than a decade ago.
Kenya exported Sh25 billion worth of textiles to become the single largest fabric exporter under Agoa and will be the biggest loser if the US fails to extend the window beyond November 2015.
“Agoa should be extended for a period of not less than 10 years to give African countries reasonable time for building competitive capacity in global markets,” said Mr Arora.
On Monday, private consultancy firm Charmy Investments Ltd released its study showing that Kenya manufactures less than 12 million square metres of woven fabric per year, or seven per cent of the market. The study indicates that 93 per cent of textile products consumed locally — including uniforms for security forces and linen for public hospitals —are imports.
