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Textile companies fight EPZ local sale

Shoppers buy EPZ clothing during a special sale organised by the Ministry of Trade in Nairobi. FILE PHOTO | NMG

What you need to know:

  • The battle pitting 48 apparel manufacturers against 17 of their competitors who are registered under the Export Processing Zones (EPZs) follows the recent measures seen to favour the latter.
  • KAM, which represents both categories of textile producers, wants the government to stop the EPZ firms from selling their products tax-free in the local market “since it poses unfair competition to non-EPZ firms.

A turf war has erupted among textile manufacturers barely two months after the Treasury granted extension allowing the sale of subsidised fabric in the local market.

The battle pitting 48 apparel manufacturers against 17 of their competitors who are registered under the Export Processing Zones (EPZs) follows the recent measures seen to favour the latter.