1. OVERVIEW OF THE COTTON SECTOR IN KENYA Head: Fibre Crops Directorate
Anthony Muriithi
Head: Fibre Crops Directorate
ACCRA,GHANA

2. Main Growing Areas Rift Valley Irrigated production Western Nyanza
LEGEND
Irrigated production
Rain fed production
Nyanza

3. Background: Cotton lint Production

4. Historical Background
Introduced in cotton is among the first cash crops in Kenya
1932 Colonial Government enacted the Kenya Cotton Ordinance.
1950: East Africa Cotton Research established at Msabaha
1950 – 1960: Cotton was principal export at the port of Mombasa

5. Historical Background(contd)
1955: Cotton Act enacted establishing the Cotton Lint and Seed Marketing Board(CLSMB) to promote Cotton production and Marketing
1963:Cotton spread to western Kenya, KICOMI opened and thrived.
1977 – 1978:Colapse of East African Community and instability in the region
Mid 1980’s: cotton was leading manufacturing activity in terms of size and employment

6. Historical Background(contd)
Structural Adjustment Programmes(SAP’s) in mid 1980’s , collapse of the cotton industry due to influx of cheaper textiles and Second hand clothes(Mitumba).
1991: Collapse of Cotton Board of Kenya due to indebtness
2000: Preferential trade with EU and USA

7. Structure of Kenya Cotton Value Chain
The sub-sector is comprised of following:
Cotton production
Ginning
Spinning
Weaving
Garment and non apparels making
Peripheral industries (oil, animal feed manufacture, sanitary wares)

8. Achievements Implementation of Trade rules (LN 405 of 2007) - Seed
-Production
-Primary processing (ginning)
-Marketing (seed cotton)
Improvement of price from Kshs in 2005 to Kshs in 2015
-From 2010 seed cotton price pegged to global market
Seed multiplication with Kenya Seed company and Kenya Agricultural Research Institute .
New private varieties at advanced stage towards introduction

9. Quality assurance for local lint
To address concern on quality and consistency
of demanded local lint by buyers and processors,
classification services being have been rolled
out from this season.
Cotton Classification
procedures developed for measuring physical attributes for cotton that affect quality of the finished products and manufacturing efficiency.
All bales will be tested and quality attributes will accompany bales offered for sale
Attributes are among others: trash levels, fibre length, micronaire, fibre strength, colour grade, maturity etc

10. Interventions – Production
Status
Intervention s
High input costs (mainly pesticides at 35% to 57%)
-Integrated input system ( cooperative approach)
-Implement crops Act 2013
Poor farm yields from:
-Low adoption of technology
-Lack of certified seeds
-New varieties, Bt cotton, Certified seed
-Incentives to catalyze Public Private Partnerships
Marketing :
-Poor and unpredictable prices
-High cost of capital leading to delayed and irregular payments to farmers
-Collapse of cooperatives
-Establish a price stabilization fund or a revolving fund
-Contract farming

11. Interventions – Ginning
Status
Intervention
Inefficient technology
-Incentives or appropriate long term credit schemes for integrated ginning investments. And PPP
-Consider ginning sector under the implementation of SME parks
High cost of power
-Revise tariff lines on power for the sub sector (billing)
High operational costs
-Invest in energy efficient solutions & integrate into by-products value addition
-Collapse Farmer ginneries
-Inadequate working capital and weak management of farmer owned ginneries
-Promote PPP to revive farmer owned facilities
-Enhance capacity through application of CAP 490 of the amended cooperative Act, 2004
Delay in payment for lint

12. Interventions – Textile and Apparel Manufacturing
Status
Intervention
High cost of manufacturing, particularly from high power and labour cost
-Revise tariff lines on power for the sector
Usage of obsolete technology
-Incentives to investments (investigate rebates and other options to investors).
Threat from cheap imports (new and used)
-Appropriate tax to level competition
-Strengthen surveillance for compliance to standards and taxes
-Promote local consumption
-Introduce incentives for buy Kenya, build Kenya brand

13. Interventions – Textile and Apparel Manufacturing
Status
Intervention
Inadequate skilled manpower– Expatriates
Affirmative action to build local capacity. PPP
High rate of interest
Incentives like government guarantees on borrowed capital for modernization
-Programs with Development partners
Inadequate cotton from within the country (quantity, quality, consistency and price)
Forward contracts and strengthen quality control
Missing links and disproportionate capacities across the chain
forward contracts

14. Role of Women in Enhancing Cotton Competitiveness
Women are key players in cotton value chain
Provide bulk of labour in farms through family and salaried labour
Comprise of two thirds labour force in ginneries
Form about 70% of workers in spinning and textile mills and are key players in the fashion industry

15. Hand Spinning

16. Handwoven garments by women groups

17. A lady farmer scouting for pests

18. Field training to women cotton farmers

19. A hand weaving women group

20. Thank you