Government agencies and bodies may soon have to purchase their textile and garment requirements from local enterprises in a move aimed at reviving the local textile industry.
Prime Minister Hon. Raila Odinga assured the business community that a directive would be issued which will ensure that the military, police force, prisons and National Youth Service procure their garments from the local textile industries.
He said the government was a very big consumer and in a better position to support local industries by purchasing from them as opposed to sourcing externally.
"The Government is looking at its own procedures particularly with regard to textiles and is looking at ways of working with the procurement authority on how to support the local industry," said Raila during a meeting with the Kenya Association of Manufacturers' (KAM) textile sector.
KAM members expressed disappointment that although most textile industries produce goods that can be consumed, this does not happen since most of government institutions source for their requirements from outside Kenya.
"Many local companies have products that can be consumed by public entities locally. Regrettably, although the Government buys a lot of products, they don't do so from local industries and instead prefer purchasing from abroad," said KAM's Chief Executive, Ms. Betty Maina.
Industrialisation Minister, Henry Kosgey said although Government procedures require that 15 per cent of all procurements for public institutions be done locally, this is not implemented and most of the requirements are bought from abroad.
"Unfortunately, the local industries are not expanding and we are currently losing a lot of jobs because nothing is being done to salvage the situation. There is urgent need to change this," said Kosgey.
He emphasised on the need to revive the local textile industry if the country is to industrialise at the desired rate.
The textile industry stakeholders asked the Government to immediately implement the Cotton, Textile and Apparel Value Chain Report for Kenya that was produced by a Government Task Force.
"This report should be adopted in order to restore the industry to its previous glory," said Kenya Apparels Manufacturers of East Africa's (KAMEA) Chairman, Mr. Jaswinder Bedi.
industry shrinkage
The textile industry stakeholders raised concern over the high production costs in the country which end up making locally manufactured products uncompetitive both locally and internationally.
Bedi said that although the textile industry was the second largest employer after the public sector in the 1980's and 90's, this was not the case presently because the industry has shrunk over the years.
"Liberalisation that occurred in the 1990's has seen the textile industry shrink which resulted in the massive loss of jobs and closure of industries." Bedi said.
He noted that although the African growth and opportunities Act (AGOA) gave hope to the industry, the end of the Multi Fibre Agreement (MFA) resulted in further industry shrinkage and collapse.
While the industry as a whole used to employ close to 500,000 people, it has shrunk over the years and currently only employs approximately 14,000 people.
41 cotton factories have closed down since 2006 with some relocating to destinations that offer lower costs of doing business.
"Decisive action must be undertaken to save this important industry from complete collapse. All the jobs that were lost would actually have been saved if the Government had taken decisive action and moved in to save the industry," said Maina.
