IEA & KIPPRA report places cotton crop earnings at Sh179 million
13 Jul '06
2 min read
Institute of Economic Affairs and Kenya Institute for Public Policy Research and Analysis (Kippra) released findings of their survey entitled 'Trade Liberalization and Poverty in Kenya: A case study of the Cotton-Textiles sub-sector' in Nairobi recently.
Kippra study says the crop could easily surpass the current earnings, which stands at Sh179 million with the current total area coverage of about 25,000 hectares, meaning that if the potential 350,0000 hectares were used, then revenue from the crop would be about Sh2.5 billion despite the existing hindrances.
The problems started in the 1990s when the sub-sector was opened to import and assist Kenya after abolition of marketing boards and mismanagement of the cotton board, leading to indebtedness and halting of production after farmers failed to get payments for their produce between 1993-1995.
The trade liberalization regime, introduction of Export Processing Zones (EPZs), the sprawling exhibitions in town centres and influx of second hand clothes had resulted in trade shock and poverty in cotton growing areas, highlights the survey.
It surmises, in 2005 Kenyans lost 70, 000 jobs despite EPZs creating 39, 000 jobs.
Encouraged by new markets created by the African Growth Opportunity Act (Agoa) most farmers returned to growing cotton in the years 2001-2005.
For consumers liberalization although was a positive aspect as it had provided cheap and affordable clothing of relatively good quality.
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