Discussion Paper No. 24 of 2003 on Prospects of Kenya's Clothing Exports under AGOA after 2004

Abstract

After unprecedented decline in Kenya’s cotton-textile-apparel industry since the early 1990s, substantial interest in its revival has emerged. This interest has largely been stimulated by the market opportunity presented by the United States’ African Growth and Opportunity Act (AGOA) of 2000 and the potential of the industry in poverty alleviation. Within only two years of qualifying for AGOA, Kenya’s exports of clothing, and investment in the textile sector, have experienced remarkable growth. This study explores the prospects of this growth continuing after 30 September 2004, when Kenya will be required to source raw materials either locally, from other AGOA eligible sub-Saharan African (SSA) countries, or from the US. Using secondary and primary production, trade and other types of data relating to the entire cotton-textile-apparel chain, this study looks at the issues involved and examines the prospects of each of the various options available to the country...