Kenya’s earnings from textile exports hit KSh33.7 billion in the nine months to September 2021, a 31.1% growth (KSh8 billion) compared to KSh25.7 billion a year earlier.
The rise in textile exports earnings was boosted by higher sales to the United State and the Netherlands.
The African Growth and Opportunity Act (Agoa) –the US free trade scheme- allows Kenya to export selected goods at preferential terms to the US, exempting them from paying tax. The initiative, which was expected to end in 2015 after an initial deadline of September 2012, was extended by US lawmakers for 10 years until 2025.
Locally, the introduction of Bacillus Thuringiensis cotton, Kenya’s first genetically modified, insect-resistant cotton seeds, has boosted cotton farming as well as quality. Currently, Kenya produces an average of 25,000 bales of cotton against a demand of 200,000 bales annually.
Currently, Kenya’s textile and apparel industry, although is just a small contributor to the nation’s economy – representing just 0.6% to GDP and accounting for only 6% of the manufacturing sector – still earns 7% of country’s total export earnings.
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