Government breaks ground for Sh1.2 billion cotton factory at Lamu Port
Strategically located along the LAPSSET corridor, the new facility aims to unlock the untapped industrial potential in the region
Over 300 Kenyans are expected to benefit with employment opportunities at a Ksh 1.2 billion cotton ginning and oil extraction factory at the Lamu Port, whose construction is set to commence following the holding of a groundbreaking ceremony.
Speaking during the ceremony, Investment, Trade and Industry Cabinet Secretary Lee Kinyanjui stated that the project will also include technology transfer and capacity-building programs that will deepen local expertise in textile processing and value addition.
“What we are launching today is more than a factory; it is a bold signal of Kenya’s industrial future. The investment will revive local production, create dignified jobs, and signal the resurgence of our domestic value chains,” he stated.
Kenya Development Corporation (KDC) director Benjamin Muketha revealed that they will be 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 catalyse this transformative investment. Our role is to finance aspirations, nurture industries, and drive inclusive prosperity in regions like Lamu,” he said.
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.
The factory will have the capacity to process up to 20 million kilogrammes 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 investment heralds a new era for Lamu and coastal Kenya, an era defined by productive industries, decent jobs, and sustainable development.
The government views this public-private partnership as a model for regional industrialization that is locally driven and globally competitive.
According to Kinyanjui, the project reinforces the country’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. Partnerships like this are the engine of long-term transformation,” he stated.
