Kenya Unveils Kes. 1.2 Billion Cotton Factory in Lamu to Drive Regional Industrialisation

The Government of Kenya, in partnership with Thika Clothing, has launched a Kes. 1.2 billion Cotton Ginning and Oil Extraction Factory at the Lamu Port.

The groundbreaking ceremony, held at the strategic LAPSSET Corridor site, was officiated by Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui. He was joined by Lamu County Governor H.E. Issa Timamy, key representatives from development finance institutions, and senior government officials.

“What we are launching today is more than a factory; it is a bold signal of Kenya’s industrial future,” stated Hon. Kinyanjui.

The factory, which will anchor broader industrial activity in the region, is expected to revitalise the cotton value chain through contract farming, structured markets, and cooperative-led development. With an annual processing capacity of 20 million kilograms of cotton, the facility will source raw material directly from local farmers, offering them predictable incomes and market access.

“Let Lamu become a benchmark for county-based industrial transformation. Let this investment revive local production, create dignified jobs, and signal the resurgence of our domestic value chains,” Hon. Kinyanjui added.

The project is set to create over 300 direct and indirect jobs, with a strong focus on empowering women and youth. It also includes technology transfer and training programmes to build local expertise in textile processing and value addition.

Speaking at the event, Principal Secretary for Investment Promotion, Mr. Abubakar Hassan, praised the initiative as a lifeline for coastal cotton farmers. “It provides structured markets, stable incomes, and strengthens cooperative economies,” he said.

The Kenya Development Corporation (KDC), operating under the Ministry of Investments, Trade and Industry, is facilitating the project’s financing. This includes long-term and working capital support, as well as machinery acquisition in partnership with the Exim Bank of India.

“KDC is proud to catalyse this transformative investment. Our role is to finance aspirations, nurture industries, and drive inclusive prosperity in regions like Lamu,” said KDC Director, Mr. Benjamin Muketha. He added, “This factory will produce not just garments or oil, but economic opportunity. It will position Lamu as a competitive player in Kenya’s value-added supply chains.”

The Lamu cotton factory is seen as a model for county-level industrialisation that is locally driven yet globally aligned. It strengthens Kenya’s strategic positioning under trade frameworks such as the Africa Continental Free Trade Area (AfCFTA).

“We must continue to work together to unlock Kenya’s full industrial potential,” concluded Hon. Kinyanjui. “Partnerships like this are the engine of long-term transformation.”

This landmark investment signals a new era for Lamu and the coastal region—one marked by productive industries, decent livelihoods, and sustainable economic growth.