Monday, July 30, 2018

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Will a revived textile industry push mitumba out of market?

Traders and customers at a mitumba market in Olkalou, Nyandarua County. The government slashed import duty on second-hand clothes by 10 per cent a few years ago. PHOTO | FILE | NATION MEDIA GROUP Acknowledging the idea as critical for the growth of the domestic textile sector, the Kenyan government announced its plans to roll out the ban. But the US, Kenya’s third largest export market, responded by threatening to end the country’s eligibility for duty-free clothing exports to its market under the African Growth and Opportunity Act (Agoa). Kenya smelt danger and quickly reversed its decision. While issuing the threat to EAC, US State Department’s Harry Sullivan, the Africa Bureau acting head of economic and regional affairs, noted that “while we understand the East African Community’s desire to build a domestic textile sector, we firmly believe the ban on imports of used clothing will not achieve that”. Mr Sullivan further questioned “whether consumers of used clothing will be able to afford the new apparel being made in the EAC market”. The road to Bt cotton commercialisation puts Kenya in a dilemma of either re-awakening local garment manufacturing or growing cotton for EPZ and export, and continue importing used clothes. Going forward, the government is pumping money into the sector’s revival while at the same time feeding the very monster that severed the industry. A few years ago, the government slashed import duty on second-hand clothes by 10 per cent — rates which are still applicable — a decision which led to increased mitumba imports. Dr Waturu, on the other hand, strongly believes that a revitalised textile industry will easily push mitumba clothes out of the market even without a ban. The government has invested about Sh3 billion in the rehabilitation of Rivatex, which has the largest capacity compared to all the milling factories combined and once complete, the local textile industry will be back on its strong feet, Dr Waturu observes.

For the original version including any supplementary images or video, visit https://www.nation.co.ke/lifestyle/dn2/Will-a-revived-textile-industry-push-mitumba-out-of-market/957860-4667720-p1cb33z/index.html

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