Government Breaks Ground on Sh1.2 Billion Cotton Ginning and Oil Extraction

The Government of Kenya, in partnership with Thika Clothing, has launched a Kes. 1.2 billion Cotton Ginning and Oil Extraction Factory at Lamu Port, signaling a major step in the national drive to industrialize under the Bottom-Up Economic Transformation Agenda (BETA).

The groundbreaking ceremony was led by Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui, and attended by Lamu County Governor H.E. Issa Timamy, development finance institutions, and other senior government officials.

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

Strategically located along the LAPSSET Corridor, the new facility aims to unlock the untapped industrial potential of Lamu. It will act as an anchor project to attract additional investment in agro-processing, logistics, and blue economy ventures in the region.

“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,” the Cabinet Secretary added.

The factory will have the capacity to process up to 20 million kilograms of cotton per year, sourced from local farmers through structured contract farming models. This will enable predictable incomes for farmers, stable supply for processors, and cooperative-led value chain development.

“This initiative is a major boost for cotton farmers and cooperative societies in the coastal region,” said Principal Secretary for Investment Promotion, Mr. Abubakar Hassan. “It provides structured markets, stable incomes, and strengthens cooperative economies.”

The Kenya Development Corporation (KDC), a State Corporation under the Ministry of Investments, Trade and Industry, is playing a critical role by facilitating access to long-term capital and working capital, as well as supporting machinery acquisition through the Exim Bank of India.

“KDC is proud to catalyze 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.

KDC’s support reflects its broader mandate of promoting economic development through strategic financing and business advisory services for both large enterprises and SMEs.

The factory is expected to create over 300 direct and indirect jobs, with a strong emphasis on empowering women and youth. Beyond employment, the project includes technology transfer and capacity-building programs that will deepen local expertise in textile processing and value addition.

“This factory will produce not just garments or oil, but economic opportunity,” added Mr. Muketha.

“It will position Lamu as a competitive player in Kenya’s value-added supply chains, from cotton to textiles, from agriculture to export markets.”

The Government views this public-private partnership as a model for regional industrialization that is locally driven and globally competitive. The project reinforces Kenya’s strategic ambitions under the Africa Continental Free Trade Area (AfCFTA) and other trade frameworks.

“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 investment heralds a new era for Lamu and coastal Kenya—an era defined by productive industries, decent jobs, and sustainable development.