Manufacturers: Circular economy the solution to textile waste

The Kenya Association of Manufacturers (KAM) says it is putting greater focus on the textile industry to promote a circular economy and reduce textile waste.

KAM chief executive Tobias Alando said the country risks being a dumping ground if there are no mechanisms to manage clothing waste through recycling or shredding.

"We see a lot of mitumba coming into the country, which makes clothes affordable, but we need to think about the circulatory bit of it to protect the environment," Mr Alando said noting that circular economy is the solution to textile waste and all waste.

"Circular economy is the solution to textile waste. We are focusing on the textile industry this year because its environmental impact has been ignored."

Speaking at the third edition of the Loop Forum on the circular economy, Alando said that there is a need for manufacturers to produce in a clean environment and take responsibility for the environment they produce in.

He noted that they are looking at how to get linkages and expertise from counterparts in Europe who have been successful in supporting the circular economy.

As financiers emphasise environmental sustainability and governance, the Loop economy presents a huge opportunity for small and medium-sized enterprises to tap into sustainable businesses.

If well tapped and complied with, the association said the circular economy presents access to markets which will earn the exchequer taxes and import revenues, as well as create jobs and preserve the environment.

Enforcing sustainable practices in the manufacturing space is not without challenges, the association says that lack of knowledge and awareness is crippling the efforts.

"Financing is also a challenge as many small and medium-sized enterprises are not aware of financial opportunities to fund circular economy related projects," it noted, adding that they are engaging financial institutions, local and international on the same.

The Loop Forum aims to identify collaborations and innovative ideas that can be improved to grow the circular economy and grow manufacturing from the current 7.6 per cent.

However, "predictability of tax and policy remains a challenge. "Our cost of power remains expensive, however sustainable, if this is also addressed, we will remain competitive in the region," said KAM chief executive.

Zahara Stich Limited, a local textile company founded in 2017 noted that people are increasingly consuming locally and sustainably made clothes. In comparison to when the startup started, uptake and demand have gone up.

Zahara Stitch founder Grace Kamathi noted that consumers need definite knowledge on how to be eco-friendly, and sustainable to reduce waste.

She too, like many startups, decried competition from established textile companies and high interest rates. "Especially when you want to tap into bigger markets, our finances are limited as startups," she noted.

"Competition is tough for SMEs especially when you want to go business to business. Imported clothes are cheaper, affecting sales for locally made clothes."

Textile manufacturer and spinners note that they have a zero-waste policy and all their waste is recycled back into their products.

"As a manufacturer, we use a lot of energy, hence we have invested in green energy," said Spinners and Spinners Ltd chief executive Gaurav Dhanani. He noted that Kenya and East Africa have little awareness of sustainability practices and recycling as compared to Europe where even customers are willing to pay for it.

"In Kenya and East Africa, we are serving a different market, so we have to do a lot of education and communication around that topic," he said noting that there is a growing requirement for sustainability.

According to Dhanani, as local manufacturers, value addition done locally gives back to the economy, employing more people. "We employ 1,500 people. If we were not doing value addition, we would not create those employments," he said.

The trigger for sustainable business practices that drive the circular economy can be traced back to 2015 when the aggressive push for the ban of single-use plastics in Kenya.

Research shows the apparel industry contributes significantly to global carbon emissions at 10 per cent, while 75 per cent of textiles end up in landfills.

In 2024, Kenya exported textile fibres and their waste valued at Sh1.69 billion, up from 1.34 billion the previous year.