Development of a viable cotton raw material supply chain

The Kenya Kwanza government promised to develop a viable cotton raw material supply chain.

• Key progress includes the development of the National Cotton, Textile, and Apparel (CTA) Policy, the proposal of the Cotton Industry Development Bill, and the approval and distribution of BT cotton seeds to boost yields. In May 2025, the government launched a KES 1.2 billion cotton factory in Lamu to expand local processing capacity and increase value addition.
• As of January 2026  in Lamu county, the cotton ginnery project in Mpeketoni is almost complete as well as the rollout of high-yielding BT cotton seeds. The project is a partnership between the national government, the Lamu county government and privately owned Thika Cloth Mills (TCM), is positioned as a cornerstone of Kenya’s broader push to rebuild the cotton-to-textile value chain
• However, major challenges persist, including low farmer participation due to high BT seed costs, competition from cheap imported textiles and used clothing, and the potential negative impact of the expiration of the African Growth and Opportunity Act (AGOA), which previously granted Kenyan apparel duty-free access to the US market. Additionally, weak institutional frameworks, high energy costs, and reliance on imported yarn continue to hinder the sector’s full potential.