KENYA's failure fully benefit from the apparel industry's duty-free access to the US market has been blamed on its inability to deliver goods on time
KENYA's failure fully benefit from the apparel industry's duty-free access to the US market has been blamed on its inability to deliver goods on time. Kenya's Export Promotion Council head Jas Bedi told a Washington forum that it takes on average 135 days to deliver goods to US buyers from the time an order is placed in Kenya.
'That's too long in today's market,' Mr Bedi said, noting that China delivers orders from US purchasers in just 45 days, reported Nairobi's East African daily.
Mr Bedi said the 75 days it takes for fabric from Asia to reach manufacturers in Kenya accounts for most of the lag in delivery of finished products to the US. The varieties of fabrics needed to keep pace with rapidly changing demand are not made available to Kenyan factories in a timely fashion.
Shortening the supply chain would enable Kenyan manufacturers to reap greater benefits through the US preferential trade programme known as the Africa Growth and Opportunity Act (Agoa).
Kenya's total exports to the US under the Agoa programme peaked at KES35.2 billion (US$349 million) in 2015, before falling to KES32.7 billion last year.
'Regional integration would make a big difference,' Mr Bedi said. If fabric was produced in sufficient quantities in East Africa, Kenyan manufacturers would become far more competitive, he said.
However, Mr Bedi warned that the investment needed to achieve that goal - up to $100 million - will be difficult to secure due to concerns over long-term returns.
Agoa is set to expire in 2025 and US officials have warned that duty-free exports from Africa are unlikely to continue after that date.
