Kenya to lose 36,000 AGOA jobs; Kenya hires Trump Lobbyists to stop this

[Globalcitizen12]

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I read on the local dailies that a trade association has asked congress to BAR east Africa community from participating in AGOA. The reason being that Kenya and other members have agreed to ban second hand clothes. The trade association claims this violates AGOA treaty which bars member states from restrict trade with USA. Haha.. so sweat shop jobs are now worthy millions of jobs that a textile industry can provide if Mitumba is banned.

Washington Embass have signed a shs 120 million to pay two lawyers that are close to trump administration to lobby

[gout]

The approach to have EPZ produce affordably for local market is the way to go. Let Kenyans wear new clothes and enjoy the investments we are making into ensuring cheap power.

[Globalcitizen12]

I bothered read AGOA act one time and the problem with textile industry in Kenya is lack of law materials. Right Kenya investors are nothing but "Pakistan and India" investors who benefiting. I think the act had some laws placing quotas on how much textile materials can be imported. To protect local market there is a clause prohibiting any goods manufactured in this zone from being sold locally.

I agree this model needs to be replicated. The only problem is that Kenya labor is still expensive and power is still very expensive. The only way we could beat is ASIA is by mechanization and cheap power. I suggest these industry be moved to Naivasha or somewhere that land is cheap and labor from the rural areas can be easily sourced. Nairobi Athi river seems like a bad place for this business because costs of production will be high.. May be what Kenya can do is ban second clothes in phases.. Plus ban importation of clothes from ASIA. this would allow the market to grow organically as we experiment.

We still need to invest in textile production.

[hk]

The approach to have EPZ produce affordably for local market is the way to go. Let Kenyans wear new clothes and enjoy the investments we are making into ensuring cheap power.

I couldn't agree more. Already the effect of EPZ produced textile being sold in the local market has started to be felt. Eastleign cloth economy will collapse soon and all those importers of clothes. The opportunity now is for kenyans to start producing raw materials to feed this companies. AGOA isn't about to be scrapped but kenyans companies might be forced to buy equipment from America.

[RV Pundit]

I don't understand the EPZ local purchase thing. Is only during Expo or everyday I can walk to EPZ and buy new clothes? Looking at the prices - they are as competitive as Mitumba.

I couldn't agree more. Already the effect of EPZ produced textile being sold in the local market has started to be felt. Eastleign cloth economy will collapse soon and all those importers of clothes. The opportunity now is for kenyans to start producing raw materials to feed this companies. AGOA isn't about to be scrapped but kenyans companies might be forced to buy equipment from America.

[hk]

pundit,
yes the exhibition is the start, but mohamed cs of industrialization has bill of at least 20% f epz produce goods to be sold locally.

[Globalcitizen12]

So are they being sold locally or not