Kenya's textile blueprint underway

The government is studying recommendations of the 2006 taskforce report on the textile industry with a view to formulating policy measures to revive the industry.

This will be contained in a stimulus package currently in its formative stage but with emphasis on sustainable cotton production.

Prime Minister Raila Odinga said plans to cushion the sector from the ravages of economic woes may soon be unveiled to ensure that the industry resumed vibrancy.

He said some of the measures to be put in place include offers on subsidies and tax waivers for investors.

“We are ready to help reduce the tax burden on investors especially on the power bills which have lately attracted public outcry. We are trying to create an investment destination in the country,” he said.

Energy taxes

Mr Odinga spoke on Wednesday when investors in the sector paid him a courtesy call at his Treasury Building offices.

He told the investors of the government’s intentions to factor the proposed adjustment into the coming budget to protect surviving firms from collapse.

The Prime Minister said plans to waive energy taxes and levies could not be ruled out in the stimulus package in the wake of the realisation that the cost of power was discouraging investors.

He challenged investors to install solar and wind power generators to cut costs and supplement the energy supply from the national grid.

At least 40textile companies have closed shop and about 400,000 jobs lost since 2006 due to the hostile investment environment in a sector that had the potential to employ more than 500,000 people.