KENYA’S COTTON SUB-SECTOR REFORMS HIGH GROWTH POTENTIAL PRIVATE SECTOR PERSPECTIVE By Fred Kong’ong’o African Cotton & Textile Industries Federation (ACTIF) Secretariat COTTON IN AFRICA SEMINAR Ngurdoto Mountain Lodge, Arusha 7TH SEPTEMBER, 2007

Cotton-to-Garment Market and Institutional Support Structure

Kenya’s Cotton Sector Profile

Kenya’s Ginning Sector Profile

Reforms Ginners initiative Government - Private sector Donor led Most Gins bought by private sector Struggled to survive Reforms currently supported and funded by the World Bank Provide matching grant All supply chain stakeholders; Established an Apex committee Positive results; Apex committee developed cotton price formula acceptable to all Influencing policy chain Government Established cotton Authority All stakeholders represented To regulate the sector Research to improve seed variety BT trials on going Supply seeds free, motivate farmers Ginners initiative Formed Association to improve competitiveness and market access Organized- regional basis -Eastern region well organized so far Buy input and spare parts together: Economies of scale Enter contract with farmers-protect territory Organize joint training for Technicians/ farmers-reduce cost Joint marketing and export of surplus cotton Make sense in establishing price and market Utilizes www.cottonafrica.com for price/market discovery

Bottom Line Needs Is the glass half full or half empty? Associations’ commitment to co-operate - formal Communication & information key Platform for information sharing Public sector partnerships / dialogue a must International alliances / linkages key Institutional support paramount; still work in progress Quality lint and honouring of contracts bottom line

WHAT DO WE SAY ABOUT KENYA’S COTTON SUB-SECTOR THE GLASS IS HALF FULL…. Regional & Global Cooperation ~ the key to market development and enhancing competitiveness - directly linked to the industry’s ability & desire to organise itself!