Kenya's textile industry is set to face a severe blow after a proposal by the East African Sectoral Council to move tax paid on imported apparel to the highest band under the Common External Tariff (CET) in a bid to boost local production.

The council, which is responsible for investment and trade in the region, aims to promote cotton production within the region and reduce reliance on imports that have hindered the growth of the industry.

Currently, Kenya produces less than 12 million square metres of woven fabric per year, while the market demand stands at approximately 171 million square metres, making it a net importer of both cotton and textiles. The council's proposal would raise the duty levied on textiles under CET to 35 percent, the highest tax band under the East African Community.

The council's recommendation came during its 38th extraordinary meeting in Tanzania, where it also called for the expansion of harmonised cotton, textiles, and apparel articles under duty remission to enhance trade among member states.

The council urged member states to establish a digital platform to facilitate the exchange of information on cotton harvesting and trade to boost intra-regional trade on the products.