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EPZ Apparel sector records 7.8pc growth in 2023
Trade, Industry and Investment Cabinet Secretary Rebecca Miano (centre) EPZA CEO Richard Omelu (right) and EPZ Board Chairman Richard Cheruiyot during the EPZ Investors Forum in Athi River sub-County, Machakos County on June 24, 2024.
The Export Processing Zone's apparel sector has recorded significant growth in the last one year, boosting sales volumes and carving a niche in the global apparel market.
The growth in the apparel market is said to have tapped billions of shillings worth of investments within the controlled zones and boosted employment opportunities for Kenyans, especially women and youth.
Speaking at the EPZ Investors Forum in Athi River, Machakos County on Tuesday, the Cabinet Secretary for Trade, Industry and Investment, Ms Rebecca Miano, said the country's apparel sector recorded a 7.8 per cent growth in 2023 compared to 2022. She said in 2023, EPZs exported apparel worth Sh146.4 billion with domestic sales generating Sh1.8 billion.
"Also, cumulative capital investment increased to Sh146.4 billion in 2023 compared to Sh135 billion in 2022. Several regions including Nairobi, Central, Eastern and Rift Valley recorded a cumulative capital investment of Sh88.5 billion," said CS Miano, reiterating the government's commitment to creating an enabling environment for investors.
She further said for the ministry to realise the projected 15 per cent growth in the manufacturing sector worth US$10 billion by 2025 and 30 per cent growth by 2028, the challenges of water scarcity and high cost of electricity are being addressed.
"The Athi River EPZ zone and the entire Athi River township are poised to benefit from the Ministry of Water's Northern Water Collector project, which is currently underway."
The Northern Water Collector is a Sh6.8 billion project funded by the World Bank that is expected to solve Nairobi's water problems and increase water supply to a capacity of 140 million litres of water per day.
CS Miano further said: "Special Export Zones (SEZs) have already benefited from the subsidised utility bill plan. Negotiations are at an advanced stage to include EPZs. We are also encouraging the use of green investments".
She added that the Ministry of Trade is negotiating for four market access in regional markets including the African Continental Free Trade Area, EAC, Comesa and the Tripartite Free Trade Area.
"We continue to look for a better niche in the global apparel market. The Ministry of Trade is championing the post-2025 Agoa extension. The US Congress has signalled the possibility of extending the framework for a further 16 years to 2041," CS Miano added, saying that if the extension is realised, EPZ companies will continue to enjoy quarter-free and duty-free access to the US markets.
EPZA Chief Executive Officer Richard Omelu said with four newly gazetted private EPZ zones, human capital is expected to grow by double digits this year.
"Our current EPZ zone has 75,000 employees. With the expansion of existing industries and new entrants, especially in the garment and agro-processing sectors, we expect the workforce to grow by double digits by the end of the year," said Mr Omelu.
He said the management had since revoked land allocations previously made to prospective investors within the zone.
"Months ago, we issued notices to investors who held plots of land for years without developing them. We have revoked them and allocated them to new investors. Land under the EPZ is for development and not for speculation," Mr Omelu added.
EPZA Board Chairman Mr Richard Cheruyiot said the Sh17 billion Kinanie Leather Park is at 90 percent completion and the Standard Gauge Railway extension sliding into the Athi River EPZ to serve the zone will be major facets towards much more business growth that will have an economic ripple effect on the country.