Thika Cloth Mills has launched a Sh1.2 billion project to establish a cotton ginning and oil extraction factory in Lamu County.
Launched in collaboration with the Kenyan government, this initiative is expected to generate 300 direct and indirect jobs.
The factory will have the capacity to process up to 20 million kg of cotton annually, sourced from local farmers through structured contract farming arrangements.
Emphasizing on the significance of the project, Lee Kinyanjui, Trade Cabinet Secretary stated, , More than just a factory; this project is a bold signal of Kenya's industrial future. He envisioned Lamu becoming a model for county-based industrial transformation, revitalizing local production, creating jobs, and strengthening domestic value chains.
The Kenya Development Corporation (KDC) will provide support to facilitate access to long-term and working capital for the project, as well as assist in the purchase of machinery through the Exim Bank of India.
Abubakar Hassan, Principal Secretary-Investment Promotion highlighted the benefits for cotton farmers and cooperative societies in the coastal region, including structured markets, stable incomes, and strengthened cooperative economies.
Cotton is cultivated in various semi-arid regions across Kenya, including parts of the former Eastern, Central, Nyanza, Coast, Western, and Rift Valley provinces.
Benjamin Muketha, Director, KDC emphasized the broader economic impact of the factory, stating that it will produce not just garments or oil but an economic opportunity. The processing of cotton yields lint (40 per cent) and seed (60 per cent), with the seed further processed into oil for human consumption and seedcake for animal feed.
