A KSh 1.2 Billion Cotton Ginning and Oil Extraction Factory at Lamu Port
A KSh 1.2 Billion Cotton Ginning and Oil Extraction Factory at Lamu Port
Government Breaks Ground on New Factory, Marking a Major Step in Kenya’s Industrial Agenda
The Government of Kenya, in collaboration with Thika Clothing, has launched a KSh 1.2 billion Cotton Ginning and Oil Extraction Factory at Lamu Port.
This project represents a significant milestone under the Bottom-Up Economic Transformation Agenda (BETA), which seeks to accelerate inclusive industrial growth across the country.
Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui https://en.wikipedia.org/wiki/Lee_Kinyanjui, led the groundbreaking ceremony. He was joined by Lamu County Governor H.E. Issa Timamy, senior government officials, and representatives from development finance institutions.
“What we are launching today is more than a factory,” said Hon. Kinyanjui. “It is a bold signal of Kenya’s industrial future.”
Lamu’s Strategic Role in Agro-Industrial Development
The factory is strategically located along the LAPSSET Corridor. Its goal is to unlock Lamu’s untapped industrial potential. Moreover, it is expected to attract new investment in agro-processing, logistics, and the blue economy.
“Let Lamu become a benchmark for county-based industrial transformation,” the Cabinet Secretary urged. “Let this investment revive local production, create dignified jobs, and reignite domestic value chains.”
The facility will process up to 20 million kilograms of cotton each year. Farmers from the region will supply the cotton through structured contract farming models. Consequently, farmers will earn predictable incomes, and processors will benefit from stable supply. In addition, cooperatives will play a central role in value chain development.
“This initiative gives a major boost to cotton farmers and cooperative societies in the coastal region,” said Principal Secretary for Investment Promotion, Mr. Abubakar Hassan. “It brings structured markets, reliable incomes, and stronger cooperative economies.”
A KSh 1.2 Billion Cotton Ginning and Oil Extraction Factory at Lamu Port
Jobs, Investment, and Long-Term Transformation
The Kenya Development Corporation (KDC), under the Ministry of Investments, Trade and Industry, is supporting the project by providing access to long-term capital and working capital. It is also facilitating the acquisition of machinery through the Exim Bank of India.
“KDC is proud to catalyze this transformative investment,” said Director Mr. Benjamin Muketha. “Our role is to finance ambitions, grow industries, and promote inclusive prosperity, especially in underdeveloped regions like Lamu.”
The factory is expected to create over 300 direct and indirect jobs. Notably, there is a strong focus on empowering women and youth. Beyond employment, the project includes technology transfer and capacity-building programs. These will help build local expertise in textile processing and value addition.
“This factory will generate more than just garments or oil,” Mr. Muketha added. “It will create economic opportunity. It will also help Lamu compete in value-added supply chains—from cotton to textiles, and from agriculture to exports.”
The government sees this public-private partnership as a model for regional industrialization. In particular, it highlights how locally driven projects can be globally competitive. The initiative also supports Kenya’s goals under the Africa Continental Free Trade Area (AfCFTA) and other trade agreements.
“We must continue working together to unlock Kenya’s full industrial potential,” Hon. Kinyanjui concluded. “Partnerships like this are the engine of long-term transformation.”
As a result, this investment ushers in a new era for Lamu and the coastal region—an era of sustainable development, decent jobs, and thriving local industries.
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