High Production Costs Led Investors To Leave Kenya'S Export Processing Zone.

Unreasonable high production costs and consequent unrealistic business costs in Kenya are forcing large numbers of investors and foreign companies to leave the country's export processing zones.

At a high-level meeting, Mr. Thomas, President of the Kenya Garment Manufacturers Association, said that in the past two years, 25 factories in Kenya have been closed, and many investors have turned their business in Kenya to other African countries, resulting in the loss of about 30 thousand people in Kenya.

Mr. Thomas said that the African Growth Opportunity Act (AGOA) is a gift from the US government to the South Saharan countries to promote the garment industry in these countries and increase employment opportunities.

In addition, these countries will also build their own infrastructure for production of fabrics, clothing and other commodities, which will generate more employment opportunities and bring more revenue to the country. Unfortunately, in the past 10 years, Kenya's industry has not seen record growth, but has gone to the brink of extinction.

The increase in electricity and fuel prices has worsened the company's profits, making it impossible for them to continue to operate, although Kenya has the advantage of labor.

Before the government takes the initiative to improve the situation and provide enough support to the existing factories, the textile and garment industry can not recover from injury.