Kenya's cotton industry has a significant market potential, as the annual demand for cotton lint exceeds 200,000 bales, while the current production stands at only 3,000 bales. Despite the country having suitable land for cotton cultivation, there are only four private ginneries in operation, leading to over 90% dependence on imports. In Lamu, where cotton yields are notably higher than in other regions, the absence of local ginneries results in farmers receiving payments that are 50% below the global market value. The county as a whole possesses vast untapped potential to provide value to farmers beyond the textile sector. The number of farmers in the region has risen steadily from 3,000 last year to 15,000 this year, with cotton farming land tripling within the same period. Currently, the cotton-to-garment value chain in Kenya is unbalanced due to the heavy reliance on imported inputs, outdated manufacturing infrastructure, and declining interest among farmers in cultivating cotton. The Sustainable Urban Economic Development Programme (SUED) funded by the UK Government is working with Thika Cotton Mills to change the narrative of the textile industry in Kenya. In Lamu, the region enjoys suitable conditions for cotton farming such as frost-free conditions, 20–30-degree Celsius temperature and a small amount of rainfall resulting in its yield being much higher than other parts of the country with farms yielding 1,500 to 2,500 tonnes per hectare per year compared to the national average of less than 500 tonnes. To take advantage of the cotton farming potential in Lamu, SUED is supporting TCM to set up the first ever cotton ginning and oil extraction plant in Lamu. The facility will specialise in ginning and will include the extraction of cottonseed oil, generating valuable by-products such as cottonseed cake for animal feed. The plant will process 800 metric tons of lint in the first year and scale up to 2,000 metric tons annually in three years. With the support of SUED, the facility will:
Enhance Cotton Farming in Lamu: Through close collaboration with the county and other local partners, farmers will receive extension services to encourage them to engage in cotton farming and implement optimal agricultural techniques to achieve high-quality yields and adopt sustainable, climate-smart farming practices.
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Local Impact: The establishment of a ginnery in Lamu not only benefits Lamu County but also the surrounding areas. Farmers in the vicinity will save on transportation costs with the ginnery nearby.
Diversified Benefits: Apart from ginning, the processing plant will produce cotton seed oil and protein-rich animal feed, benefiting local farmers and expanding the plant's revenue streams.
Enhancing Digital Efficiency: With the assistance of SUED, TCM and the County will collaborate closely with farmers to onboard them onto a digital platform. This platform will enhance resource allocation and facilitate effective communication, with the goal of delivering pertinent information on improving crop yields.
Having the cotton ginning plant in Lamu will result in higher household incomes for farmers, as they will have access to a market for their produce, incentivizing them to boost their production. Moreover, the plant will benefit over 10,00 farmers in the region, not only financially but also by equipping them with new skills to enhance their farm management practices, leading to increased incomes..
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