Modular Real Estate Limited has broken ground for its Sh69.4 million Export Processing Zone(EPZ) in Athi River.
The facility is one of the first green textile industrial spaces in the country.
The project to be completed in the next eight months, is expected to provide employment to 2,000 Kenyans once textile investments occupy it for production.
Additionally, the sustainable warehouse, which is being built using up-cycled containers, will use solar energy and include rainwater harvesting hence saving an estimated 18 tons of CO2 annually.
Measuring 6,000 sqm, the industrial space will bridge the 100,000 square meters demand for additional factory space that Kenya currently requires.
The project has attracted various investors including the United States Agency for International Development(USAID) with Sh69.4 million, a joint venture with Modular Real Estate and a loan from Trade Catalyst Africa (TCA).
According to the chairman of the Export Processing Zone Authority Richard Cheruiyot, the location of the facility is ideal for exports.
"This industrial park hosts 97 enterprises with 26,760 persons employed as of December 2023,"Cheruiyot said
Activities range from textile and apparel, pharmaceuticals, darts board, service, agro-processing, food processing, and electrical goods among others.” he added.
The latest data by the Kenya National Bureau of Statistics Economic Survey 2024 shows textiles production expanded by 6.4 per cent in 2023 recovering from a contraction of 3.3 per cent in 2022.
This was mainly on account of a 34.4 per cent increase in production of woven fabrics, in the year under review.
However, the production of wearing apparel declined by 1.3 per cent as a result of a five per cent decrease in production of shirts in the review period.
Notably, data from the statistical Kenya Apparel insights report for 2024 showed revenue in the Apparel market in Kenya amounts to US$5.95 billion (Sh763.2 billion).
Industry experts project the sector to experience a compound annual growth rate of 3.51 per cent between 2024 and 2028.
Additionally, the volume in the Apparel market is expected to reach 376.2m pieces by 2028.
In 2025, the market is predicted to exhibit a volume growth of two percent.
Kenya's apparel market is experiencing a surge in demand for sustainable and ethically produced clothing, driven by a growing awareness of environmental and social responsibility among consumers.
