A new cotton processing plant is set to transform Lamu County’s agricultural and industrial landscape, following a landmark partnership between the UK government, the Government of Kenya, Lamu County, and Thika Cloth Mills. Construction of the facility is already underway and is projected to be completed by November 2025.
The project is part of a broader effort to revive Kenya’s cotton industry, reduce reliance on imports, and drive sustainable economic growth. Once operational, the facility is expected to create up to 5,000 jobs within the next three years and significantly raise local cotton production.
“The ginnery, by Thika Cloth Mills, will boost cotton uptake and thus earn farmers more income, create jobs, and provide raw material for the textile industry,” said Hon. Lee Kinyanjui, Cabinet Secretary for the Ministry of Investments, Trade and Industry.
With Kenya currently producing only 3,000 bales of cotton per year against a demand of up to 260,000, the new facility aims to bridge that gap. In Lamu alone, production is expected to triple from 2,000 to 6,000 bales annually.
The plant will source cotton from not only Lamu County but also neighbouring counties including Kilifi, Tana River, Kwale, and Taita Taveta. Its proximity to farms will help reduce transportation costs, giving farmers a better margin while shrinking the carbon footprint of the processing chain.
According to the British Deputy High Commissioner to Kenya, Ed Barnett, the facility represents more than just industrial development — it is a demonstration of the power of collaborative development.
“The UK is a long-term partner for long-term economic growth in Kenya,” said Barnett. “This project is a testament to the power of partnerships – the UK, national government, and county governments have joined forces with the private sector to deliver 5,000 jobs and future economic growth.”
Barnett added that the initiative would help strengthen Kenya’s capacity to produce and process cotton locally.
“This partnership will reduce reliance on imports, put money in the pockets of farmers. It will strengthen, stabilise, and support a sustainable homegrown cotton industry in Kenya. Long live Kenya Kanga!”
The processing plant will also support Kenya’s climate ambitions by lowering carbon emissions. It is projected to reduce 262 metric tons of CO₂ emissions annually by minimising long-distance transportation.
Beyond economic growth, the facility also aims to deliver a strong social impact. At least 50% of its workforce is expected to be women, a move seen as a step toward promoting gender equality in the agricultural value chain.
The programme is being delivered under the UK’s Sustainable Urban Economic Development (SUED) initiative, which adds value to Kenyan agricultural produce before export. The UK has provided seed funding to de-risk the investment, while the Government of Kenya and Thika Cloth Mills have contributed additional capital. Lamu County facilitated the project by providing land for the ginnery.
This marks the fourth SUED-supported value chain project in Lamu, following earlier investments in fish, coconut, and cashew nut processing. Across Kenya, the £8 million seed fund under SUED has unlocked £48 million in private capital and supported the creation of over 10,000 jobs.
“With the infrastructure supporting export, including a special economic zone, Lamu Port, and LAPPSET, Lamu will be the hub for investors in the region,” Kinyanjui affirmed.
The UK’s involvement in Lamu County extends beyond trade. It also supports regional security programmes, plastic waste reduction efforts, and biodiversity initiatives — part of a holistic engagement to build resilient and prosperous local economies.
What is the SUED program?
SUED is a seven-year, £43m programme that seeks to create jobs and promote inclusive economic growth in selected municipalities across Kenya, through better urban planning and by attracting increased investment, including both investments in climate resilient infrastructure and agricultural processing projects
Distributed by APO Group on behalf of the British High Commission, Nairobi.
