The apparel manufacturers add that labour productivity is affected by unprogressive attitude of trade unions that promotes withholding of labour, under-performance and a tendency to seek increased payments through over-times without commensurate productivity.
In a recent memorandum addressed to Trade and Industry Minister Dr. Mukhisa Kituyi, the manufacturers said they had suffered non-renewal of orders since January. Consequently, 5,000 jobs have been lost and the trend continues at a rate of 2,000 jobs per month.
The sector is concerned that five companies have already shut down including Kenap, the first firm in Kenya to be accredited under AGOA. Many smaller factories are reportedly lying idle or operating at 50% or less capacity.
Other measures recommended to cushion the industry include the introduction of fiscal incentives, ensuring dollar stability, development of supportive logistical services to ensure faster and cost-effective delivery of goods, revitalization of agricultural supply chain for the cotton sector, equity financing, access to finance for factory upgrading, curbing of illegal textile imports, and development of other markets for Kenyan textiles outside the US.
Speaking at the regional textile and cotton summit held in Nairobi last week, Trade and Industry Permanent Secretary Dr. Nehemiah Ng'eno said African representatives in Geneva and Brussels had begun informal trade talks.
Despite the woes rade and Industry Permanent Secretary Dr. Nehemiah Ng'eno said African representatives in Geneva and Brussels had begun informal trade talks.
rade and Industry Permanent Secretary Dr. Nehemiah Ng'eno said African representatives in Geneva and Brussels had begun informal trade talks.
Despite the woes dogging the industry, apparel manufacturers still have confidence that Kenya could continue to hold on to its market share if it can find ways of reducing its internal costs by an average of 20% to replace the advantage lost through elimination of quotas.
Kenya Association Of Manufacturers
marketing@alchempro.com
