This comes as the government, through the Ministry of Trade, has been seeking more investors in the textile industry to drive local production while creating more jobs for its citizens. The country plans to scale apparel exports to the US and European Union to $1 bn (Sh152.7 bn) by 2025, from the current $544 mn (Sh83.07 bn) worth of apparel to the two markets.
Youngone Corporation, a South Korean firm, is set to be the first ever synthetic fibre manufacturer setting base in Africa, using Kenya as the launch pad with an initial investment of $40 mn. Youngone intends to start a vertically integrated manufacturing factory, from knitting to dyeing to manufacturing of garments.
The first Phase is expected to start production in the first quarter of 2025 with approximately 2500 employees. Founded in 1974, Youngone Corporation is a premier performance and outdoor apparel, footwear and accessories manufacturer. The Corporation owns and operates production facilities in Bangladesh, Vietnam and El Salvador with more than 80,000 people directly employed.
“Youngone’s integrated system has enabled them play an important role in the socio-economic development of the countries it works in. Its diverse and innovative service portfolio, matched with an unrelenting standard of quality, has provided the long-term vision and standard for the company’s philosophies,” said Miano.
Kenya expects to produce over $1 bn (Sh 133 bn) in textile and apparel exports by 2027. According to President William Ruto, a compound annual growth of 20 percent is feasible, producing over $1 bn in exports and creating 200,000 more jobs by 2027.
Kenya Apparel Exports Plan
This will further increase exports to $2 bn with 650,000 jobs by 2031, and reach over $3 bn of exports and more than 850,000 jobs by 2034, Ruto said while commissioning the Nexgen Packaging factory at the Athi River Export Processing Zone (EPZ) in Machakos County. He said Kenya’s EPZ network has expanded to 101 gazetted zones in 22 counties, accounting for Sh 149 billion in cumulative investment and direct employment to over 75,000 people. Kenya’s apparel exports currently stand at about Sh51 bn, according to a Kenya Association of Manufacturers (KAM) report.
The country is the largest exporter of garments under the African Growth and Opportunity Act (AGOA) program, with the United States being the largest export destination of Kenya’s apparel. Kenya is one of the global suppliers of big fashion brands in America such as H&M, Levi’s, JC Penny and Wrangler.
Ruto recently said the U.S., through USAID, had invested over $11 mn (Sh1.47 bn) in grants to create jobs, increase trade, and strengthen Kenya’s textile and apparel sector. The textile industry is vital to Kenya’s economy, contributing to job creation and economic growth. Kenya’s export processing zones have attracted significant investments, including Youngone Corporation’s plan to establish a $40 mn factory.
With a focus on quality and innovation, Kenya has become a key player in global apparel supply chains, supplying major brands like H&M and Levi’s. This growth reflects the country’s commitment to leveraging its manufacturing capabilities and expanding its presence in the global market.
Top Global apparel and footwear manufacturer Youngone will set up a factory in Kenya at the Athi River Export Processing Zone (EPZ), Cabinet Secretary for Trade and Industrialization Rebecca Miano has revealed. The CS said the Export Processing Zones Authority (EPZA) had received a Manufacturing application form with all the required attachments from Youngone Kenya EPZ Limited (Proposed) by April 21, 2024, and issued an Approval in Principle Letter on 25 April 2024.
