Working Paper No. 08 of 2003 on Developing a Revival Strategy for Kenya's Cotton-Textile Industry: A Value Chain Approach

Abstract

This study was motivated by the huge potential of Kenya’s cotton-textile sector in poverty reduction, its unprecedented decline since the second half of the 1980s and the market opportunities offered by African Growth and Opportunity Act (AGOA) and other trade initiatives. It sought to assess the industry’s operating environment and identify interventions necessary for its revival and sustained development. The Ministry of Agriculture and Rural Development and the Ministry of Trade and Industry collaborated in the project in recognition of the fact that the industry is a chain—starting with cotton production and ending with sale of manufactured garments—in which both ministries are key players. The study applied the business systems approach and the value chain analysis (VCA) frameworks and used both secondary and primary data. Primary data were obtained from sample surveys of all actors in the cotton-textile chain. Stakeholder input, obtained from a series of workshops and conferences, provided interesting insights.