Includes bibliographical references (p. 58-6).

Introduction -- Review of policy and legal framework -- Methodology -- Results and discussions -- Conclusion and policy recommendations.

"The cotton-textile-apparel value chain in Kenya is prioritized for job and wealth creation in the "Big Four" agenda given it is highly labor-intensive. The sub-sector has, however, performed below expectations, since it is being confronted by competitiveness challenges along the value chain. This study, therefore, explores the constraints stifling the sub-sector in a quest to harness the opportunities in the local, regional and global markets. This includes firm size and formality status of enterprises. The value chain approach is used for analysis. In addition, an in-depth review of policy framework was undertaken at both national and county levels. Further, the study explored constraints and opportunities across the value chain using rich firm-level secondary data sets, including the World Bank Enterprise Survey for Kenya 2018 and the 2016 Micro, Small and Medium Enterprises (MSMEs) Survey. Several constraints were revealed along the cotton-textile-apparel value chain. At the policy level, there are gaps in clearly articulating specific interventions along the value chain, weakening policy implementation and outcomes. At the input (farm level), constraints relate to inadequate budgetary allocation to agricultural extension services, coupled with weak farmer cooperatives, and declining returns for farmers. At the processing level, constraints relate to availability of quality cotton lint, access to relevant quality skills and high cost of production. At the market level, while regional markets and trade agreements provide some opportunities, high costs of production make locally manufactured products less competitive particularly against cheaper imports. Imports of second-hand clothes (mitumba) further constrain market access for the local cotton textile apparel industry. To revitalize the cotton textile apparel value chain, policy documents at the national and county levels need to clearly and consistently articulate specific interventions, resource requirements and indicators for monitoring to promote effective policy interventions and outcomes. At the input (farm) level, it is important to allocate more resources to extension services, revive cotton cooperatives and improve returns on investments for farmers. At the processing level, enhance supply of relevant skills with strong industry-academia linkages, improve access to affordable finance particularly for Micro and Small Enterprises (MSEs), intensify innovation and technology with incentives for Research and Development (R&D) investments, and make electricity affordable. At the market level, there is need to tap into the 'Buy Kenya Build Kenya' initiatives to access local markets, encourage 'Made in Kenya' clothes to expand domestic demand for locally manufactured textile and apparel products.