Kenya is luring global textile firms to invest and set up manufacturing units in the country. It has started off by setting up three special economic zones that would offer tax breaks. The country has a diversified economy, and is popular with tourists, but exports are dominated by farm commodities with volatile prices and low returns. Building up industry is vital for Kenya to plug a persistently wide current account deficit, projected to stand at 8.4 per cent of gross domestic product by June.

The special zones would be located near ports and offer incentives such as land for lease and tax breaks that include duty-free imports and waivers on VAT. The aim is to attract western companies who would otherwise go to Myanmar, Vietnam or China. The zones are designed to create 10 million jobs in the next 30 years. Once running, the zones would allow companies to cut down on red tape. Businesses have long complained about bureaucratic hurdles.

<br/>Kenya may also find itself battling regional rivals like Ethiopia, one of sub-Saharan Africa’s fastest-growing economies, which is also setting up new industrial zones and has attracted interest from global fashion retailers such as Hennes & Mauritz.

Kenya is the main trade gateway to east Africa. Africa is becoming the future market for many companies worldwide.