Kenya-based Modular Real Estate has commenced the development of a Sh69.4 million Export Processing Zone (EPZ) in the Athi River.
Scheduled for completion within eight months, the facility is one of the first green textile factories in the country. Once operational, it is expected to create jobs for 2,000 Kenyans. To be built using up-cycled containers, the sustainable warehouse will utilise solar energy and rainwater harvesting, reducing CO2 emissions by an estimated 18 tons annually. Spanning 6,000 sq m, the industrial space aims to address Kenya's demand for an additional 100,000 sq m of factory space.
The project has garnered significant investment, including Sh69.4 million from the United States Agency for International Development (USAID), a joint venture with Modular Real Estate, and a Sh170.3 million loan from Trade Catalyst Africa (TCA).
Richard Cheruiyot, Chairman, Export Processing Zone Authority, emphasises on the strategic location of the facility for exports. This industrial park hosts 97 enterprises with 26,760 employees as of December 2023, he states. Activities in the park will include textile and apparel production.
According to the latest data from the Economic Survey 2024 by Kenya National Bureau of Statistics, textiles production in Kenya rebounded from a 3.3 contraction in 2022 to 6.4 per cent in 2023. This growth was largely driven by a 34.4 per cent increase in woven fabric production. However, the production of wearing apparel declined by 1.3 per cent, attributed to a 5 per cent decrease in shirt production during the review period.
As per a report by the Kenya Apparel Insights for 2024, the country's apparel market generated revenue amounting to $5.95 billion (Sh763.2 billion). Industry experts forecast, the sector will grow at a CAGR of 3.51 per cent between 2024 and 2028 to reach a volume of 376.2 million pieces by 2028.
Kenya's apparel market is experiencing a surge in demand for sustainable and ethically produced clothing, driven by increasing consumer awareness of environmental and social responsibility. This trend underscores the importance of initiatives like the green EPZ in Athi River, positioning Kenya to capitalise on the growing market for sustainable textiles.
