Kenya
Sector
Agriculture & Agri-processing
Clothing & Textiles
Manufacturing
Investors have the opportunity to get involved in the growing and the ginning of cotton. Cotton production has been identified as a sub-sector that could help bring rapid economic development to Kenya.
Cotton Growing
Currently the crop is grown in Nyanza, Western, Coast, Central, Eastern and Rift Valley provinces under rain fed conditions. Cotton is also planted on irrigated land and the government has made an effort to boost production of cotton by setting up various irrigation schemes in different parts of the country. Irrigation allows for the production of two crops per annum which reduces and spreads production costs.
It is estimated that from a total of 400 000 hectares of land suitable for cotton growing only 24 995 is currently being utilised. The current production of cotton is 20 000 bales compared to 90 000 bales required by local mills annually.
Cotton Ginning
Ginning separates seed cotton into lint and cottonseed. Ginneries are a focal point in the cotton industry, and their location, efficiency and organization are critical to it. The lint processed in the local ginneries is marketed to the textile industries for fibre while the seeds are returned to farmers for planting or are used for animal feed manufacturing and oil extraction.
Kenya has an installed capacity for the ginning of about 140 000 bales per year. Currently the ginning capacity utilization is 14%. If these ginneries were up and functional even at 50% utilization, this would give rise to other related industries such as cooking oil extraction, animal feed processing, etc.
Reasons to invest in Kenya
Kenya is an ideal investment location for cotton producers as supported by various investment friendly factors that include:
Research: Good research stations and facilities to carry out research on cotton seeds, fibres and different varieties that can be introduced.
Manufacturing industries:A vibrant manufacturing sector to absorb all the cotton produced that range from ginneries all the way to garment manufacturing
Climate: Kenyan climatic conditions are ideal for cotton growers as cotton does well in semi arid areas, which Kenya has in abundance.
Strategic location: Located on the East African coast and having the port of Mombasa, Kenya is strategically located for investors wanting to access the East and Central African market. Kenya is also a regional hub for airlines allowing for easy access from and to any part of the world.
Labour availability:Skilled and unskilled labour is readily available at reasonable rates.
Incentives: A range of incentives are available which includes tax holidays, investment allowances and remission from customs duties.
For more information on this and other opportunities in Kenya's agriculture sector, please contact Margaret Waithaka, Manager: New Investments at the Export Processing Zones Authority mwaithaka@epzkenya.com
