Missing the GO in AGOA? Growth and constraints of foreign direct investment in the Kenyan clothing industry

Abstract

This research note presents findings from a small-scale survey of foreign affiliates in the Kenyan clothing industry. While a sizeable clothing manufacturing industry has re-emerged in Kenya as a result of the African Growth and Opportunity Act of the United States, the findings highlight the constraints on the growth of the industry and the development of local backward linkages. Despite the diverse growth aspirations expressed by the foreign-owned clothing manufacturers in Kenya, "growth and opportunity" appear to be missing in the industry. The characteristics of the parent transnational corporations and the shortcomings of the government in Kenya have constrained the generation of signif..