Garment firms in Kenya are characterized by differences in production patterns. Some firms engage in the
full range production activities. Others, especially some of the large exporters, are “cut-make and trim”
(CMT) contractors. One respondent in this study described these firms as “glorified tailors”.
These firms are located within global commodity chains, which are characteristic of the global trade in
garment production and retailing. Retail chains in developed country markets contract developing country
firms to manufacture garments on their behalf. The retail chains provide the designs and raw materials
required in production. The local firms cut and stitch the required garments which are then shipped to
developed country’ markets.
Table 1 shows the performance of firms in the EPZ between 1999 and 2001. In 1999 there were only five
firms but the number of firms increased in 2001 to 17. The value of exports also increased from Ksh. 1.9
million in 1999 to 4.2 million in 2001.
Table 1: Exports, Investment, and Employment in EPZ
Garment Firms, 1999-2001
1999
2000
2001
5
6
17
Exports (Ksh) millions
1.8
2.9
4.3
Investment (Ksh) millions
0.7
1.2
3.8
4,349
5,565
12,002
No. of firms
No. of employees
Source: EPZA 2001
The growth in exports has followed the recent enactment of the US government’s Africa Growth and
Opportunity Act (AGOA), which allows duty-free imports of many items from qualifying African
countries in the American market. Regional exports are also being boosted by Kenya’s membership in
the East African Community (EAC) and the Common Market of Eastern and Southern Africa
(COMESA).
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