Kenya’s textile and apparel industry is entering a potentially important stage of industrial development as manufacturers and investors increasingly look to China for technology, production expertise, capital and supply-chain partnerships. The opportunity extends beyond fashion and retail because the sector connects manufacturing, employment, consumer demand, exports and foreign direct investment. Greater investment in textile production could therefore support Kenya’s broader objective of strengthening domestic manufacturing and reducing reliance on imported finished products and inputs.
The sector has already recorded significant export growth. Kenya’s textile and apparel exports reached Kshs 66.9 bn in 2025, compared with Kshs 60.5 bn in 2024. The industry also employed more than 82,000 formal workers, highlighting its contribution to manufacturing and job creation. Government investment agencies have identified textiles and apparel as a priority area, with Kenya targeting USD 2.0 billion in textile and apparel exports by 2035 alongside more than 200,000 direct jobs. Achieving these targets will require substantial investment in production capacity, technology, skills and supporting infrastructure.
China represents a significant potential partner in this development. The country remains the world’s leading textile and apparel manufacturing center and accounts for roughly one-third of global textile and apparel exports. Chinese manufacturers have developed extensive production networks, advanced manufacturing capabilities and large-scale supply chains. For Kenya, partnerships with Chinese companies could accelerate access to machinery, production techniques, operational expertise and economies of scale that would otherwise require considerable time and capital to establish domestically.
There are already indications of growing international investor interest. In 2025, Kenya’s State Department for Investment Promotion hosted Chinese, American and South Asian textile investors exploring opportunities to establish manufacturing facilities in the country. Kenya’s Ministry of Foreign Affairs has also highlighted a USD 20 million investment by Chongqing Shangcheng Apparel Group in a new textile factory in Kajiado. Such investments could provide a foundation for deeper participation by international manufacturers and suppliers in Kenya’s textile value chain.
For investors, the opportunity extends well beyond garment factories. Expanding textile production could increase demand for industrial property, manufacturing machinery, logistics, packaging, commercial banking, insurance and energy. Local producers of buttons, zippers, labels, thread and other garment accessories could also benefit as manufacturers seek to source more inputs domestically.
The scale of Kenya’s current import dependence illustrates the potential for this shift. The country imports more than USD 1.0 billion worth of textiles annually, creating a substantial market for import substitution. Increasing domestic production could retain more economic value within the country while creating additional opportunities for local suppliers and manufacturers.
The sector could also generate wider economic benefits through employment and industrial clustering. As manufacturers expand, demand for transport, warehousing, utilities, financial services and other business-support activities could increase. Greater production capacity could also strengthen Kenya’s position within regional and international apparel supply chains, particularly if manufacturers can use the country as a base for serving East African and other export markets.
The central investment opportunity, therefore, extends beyond the growth of Kenyan fashion brands. It lies in the industrialization of the broader fashion value chain. Combining Chinese manufacturing expertise and technology with Kenya’s labor force, regional market access and potential domestic inputs could strengthen the country’s textile manufacturing base.
The extent of this opportunity will depend on Kenya’s ability to attract sustained investment, improve production efficiency, develop local suppliers and expand export competitiveness. If these conditions align, the textile sector could become an increasingly important contributor to manufacturing investment, employment, export earnings and industrial growth, while creating opportunities across a much wider network of businesses than garment manufacturing alone.
