Who Benefits from the Second-Hand Clothing Trade? The Case ... · REFERENCE No. RES-000-22-0617 19 Who Benefits from the Second-Hand Clothing Trade? The Case of Kenya 1. Background

REFERENCE No. RES-000-22-0617

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Who Benefits from the Second-Hand Clothing Trade? The Case of Kenya

1. Background There is a huge trade in second-hand clothes (SHC) donated in Western Europe and North America and exported to developing countries, especially Africa and Eastern Europe that has grown dramatically in the past 20 years. In sub-Saharan Africa (SSA), the complexity of the trade and the volume of imports entering African markets has grown enormously since the second half of the 1980s, with some reports estimating that at least one-third of the population are wearing cast-off clothing (Haggblade, 1990; Hansen, 1994/5/9, 2000).

Despite the increasing scale and importance, however, little is known about the impact of the trade in recipient countries. Much of the existing literature has focused on the perceived negative impact of the trade by local textile and clothing producers in developing countries (Haggblade, 1990; Bigsten and Wicks, 1996; Field, 2000). In contrast, the positive nature of the trade in terms of employment and consumer gains in recipient country’s, has been largely overlooked.

2. Objectives The objectives of this study were two-fold:

1. to investigate how the SHC trade operates by mapping it from the UK to Kenya; both within Kenya and between Kenya and neighbouring East African and Southern African countries.

Research successfully mapped the trade from the UK to Kenya as well as within Kenya (Sections: The Value Chain (UK), The Value Chain (Kenya), p2-8). However, contrary to secondary data, research found that trade between Kenya and neighbouring countries was not significant (‘Regional SHC distribution’, p8).

2. to evaluate who the major beneficiaries are, i.e. the distribution of the gains along the chain from the UK publics’ discarded clothing to consumers in Kenya.

This objective has been addressed using income/profit indicators, price comparisons of new and SHC and the subjective perceptions of all actors in the chain (section – Who Benefits from the SHC Trade? p9-14).

3. Methods Field research in the UK (1 month) and Kenya (2 months) combined qualitative and quantitative methods that followed a value chain approach. (Annex 1 lists the research population interviewed).

In Kenya, Nairobi and Mombasa were selected as study locations. The majority of fieldwork took place in Nairobi, home to Gikomba market, the largest SHC market in East Africa, where market research took place. Mombasa, the second largest city, was also selected because the Department of Customs and Excise Statistical Office is located there.

To cite this output: Field, S et al (2007). Who Benefits From the Second-Hand Clothing Trade?: The Case of Kenya: Full Research Report ESRC End of Award Report, RES-000-22-0617. Swindon: ESRC


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Semi-structured interviews were conducted with formal sector respondents. Informal sector, in-depth, semi-structured interviews took place at Gikomba market following a purposive research strategy to incorporate a representative sample (based on gender, type of clothing and size of business). Interviews were followed up several times over the fieldwork period.

The analysis of results was a continuous process that started during the fieldwork phase (by compiling a SHC value chain diagram) and developed more fully during the processing and interpretation stage. Processing began with the transcription of recorded interviews. These interviews were then numbered and categorised into themes as they related to the value chain diagram.

4. Results

The Value Chain – UK (Figure 1)

Textile RecyclingThe majority of discarded public used textiles are sourced through a combination of collection procedures employed by Non-Governmental Organisations (NGOs) and processed by the reclamation industry.

Charities/NGOsMost used textiles are collected by NGOs such as The British Heart Foundation, Help the Aged, Scope, for resale. Their main collection methods are: 1. Direct donations to charity shops - this method yields the highest return. 2. Textile banks; to supplement shop donations. 3. Door-to-door collections; to replenish depleted stocks collected by methods (1) and (2). Only 10-20% of these textiles are sold in the UK. In order to clear shops of bulky, unwanted clothing, the remaining lower quality garments are sold by weight to the reclamation industry.

Two NGOs, that differ to those outlined above, have extended their involvement in the trade by directly or indirectly processing and exporting large volumes of SHC: 1. Oxfam – processes waste textiles and exports SHC at its textile recycling plant,

Wastesaver. 2. The Salvation Army (SA) operates in partnership with a private reclamation

company, Kettering Textiles Ltd. which collects textiles using the charity’s brand name. The SA receives an annual percentage of the profit.

The Textile Reclamation IndustryApproximately 80 private companies (referred to as ‘graders) comprise the UK industry in the UK. They collect, sort and process used textiles for export overseas. Graders vary in size, ranging from small companies processing 40-50 tonnes/week (eg. Terimpex Ltd.), to large companies which process 200-250 tonnes (eg. Kettering Textiles). Depending on size and capacity, graders may employ up to 200 staff in administration, collection, transport and factory work.



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Donated Clothing

Charity Shop

Textile Bank

Door-to- Door Collections

Textile

Industry

Commercial Importer

-----------------------------------------------------------------------------------------UK

Kenya

Figure 1 THE VALUE CHAIN

Reclamation

Donate free

Sell for profit

Sort GradeBale

Wholesaler

Retailer Camerman 1st camera

Hawker/consumer 2nd camera

Boutique Consumer

Consumer Clearer 1 3rd camera

Clearer 2,3,4 etc

Consumer

Camerman

Consumer

Urban

Rural

Employ tailor/ironer



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Graders provide a once/twice weekly textile collection service to charity shops and textile banks at a price that varies from £90-120 per tonne. At their factory, the materials are unloaded onto a conveyor system that moves the product through the factory in front of a team of operators who sort the textiles for their material content. Primary sorting establishes five market routes for material (Table 1).

Table 1 Sorted Textile Categories

MarketProportion

collected (%)

Cream percentage (nearly new, high quality clothing) – sold to vintage shops in the UK

5

SHC – exported to developing countries 45 Fibre reclamation – sold to UK recycling industry 25 Wiping cloths – sold as industrial wipers and flocking rag in UK 15 Waste – sent to landfill 10

In terms of volume, SHC export sales are the largest market outlet generating the highest income. The proceeds made from the sale of SHC offset the costs of recycling lower-grade textiles. This category, therefore, constitutes the backbone of the textile reclamation industry.

The SHC Process Once SHC have been separated from other textile categories they are sorted into six garment types – jackets/coats, shirts, trousers, knitwear, silks and cottons. Each category is removed from the conveyor belt and placed into the appropriately labelled container corresponding to the garment type. The containers are then sent to the relevant re-sorting section where the items are further sorted and graded according to quality, gender, size, material and weight. Trousers, for example, are first graded by high, medium and low quality. Next, they are sorted by gender and size, eg. men’s, women’s and children’s (under 28 inches). Then they are separated by material content, eg. cotton, jeans, corduroy etc. By the end of this process, the clothing has been separated into approximately 100 different grades. To enable maximum and efficient storage space in transit, each separated grade is transferred into a baling machine that compresses the clothing into 45kg bales.

Value-addedFor the graders, it is in the labour intensive sorting and grading process that the profitability lies; through the exploitation of these different grades and categories, value is added and they maximise their profits. For example:

� Dividing clothing into grades based on quality enables graders to command a higher price for the best quality clothing and also allows buyers to select the most appropriate grade to satisfy consumer demand.

� In order to increase the value of grades and to ensure the entire product is off-loaded, buyers are required to purchase a consignment based on a pre-determined packing list. The packing list is a trade-off between high and low value grades. For example, in order to access two bales of bras (known as fast movers because they are rare and command a higher price), a Kenyan buyer



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must also accept 10 bales of knitwear and 10 bales of men’s woollen trousers (known as slow movers because they are harder to sell).

ExportFollowing orders from buyers in SSA, bales are shipped in containers that comprise 450-500 bales, weighing a total of 25 tonnes. Generally, 100 tonnes of used textiles generate three consignments. Oxfam’s Wastesaver, for example, collects this amount per week and makes one consignment every 2-3 days.

The price of a container varies from £17,000 to £22,000 and is determined by the contents of the packing list. Most suppliers sell SHC as ‘ex-works’, i.e. along with the consignment price, buyers are responsible for all export/import costs (transport, freight, clearing fees, insurance and import duties) amounting to more than £2000. Finally, once the consignment has been loaded into the container, it is transported by lorry to the docks for shipment to SSA. Table 2 illustrates that Kenya is one of the leading destinations for UK exports.

Table 2 Key destinations for UK exports (2003)

Destination UK exports (tonnes) Ukraine 24,000 Kenya 22,700 Pakistan 22,300 Ghana 17,300 Togo 16,300 Total 207,000

The Value Chain – Kenya (Figure 1)

The Socio-economic contextAccording to available Customs data, from 1998–2002, the quantity of Kenyan SHC imports increased by 32%, from 50,000 tonnes in 1998 to 67,000 tonnes in 2002. The United States, Canada, Germany and the UK are the principal countries of origin.

The rise in SHC imports can be attributed to most Kenyans becoming poorer. The latest population figures show that there were 30 million people in Kenya in 1999, of whom 15 million people were employed. As a result, the pressure for many to join the small scale and informal sector has increased.

The sharp deterioration in economic performance over the last decade has led to rising poverty. In 1997, 13.4 million Kenyans (over half the population) lived below the poverty line. Thus, the reduced purchasing power of most low-income people has led to consumers buying fewer luxury items and seeking cheaper outlets for their purchases, i.e. informal sector commodities.

The tariff regimeThe legality of SHC trading operations under the Moi regime (1978-2002) remains unclear. Allegations by the Department of Customs and Excise suggest that despite



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high tariff duties (Ksh80/kg) to protect local clothing production, trade flourished as a result of corruption and political nepotism. Led by President Daniel arap Moi’s son, a few well-connected businessmen imported SHC and bypassed tariff duties by bribing government officials. This effectively constituted a ‘cartel’ that held a monopoly over the trade. In the late 1990s, although tariff duties were reduced to Ksh15/kg, new importers were prevented from entering the trade by threats and intimidation. With the arrival of the new Government in 2002, the SHC tariff regime was revised and enforced. Duties were raised to Ksh25/kg and the ‘cartel’ was dismantled. Although more importers could join and benefit from the trade, the enforcement of duties resulted in higher SHC import costs that impacted through the entire Kenyan value chain.

Importers/BuyersMost SHC importers are Asian men. They number approximately 60-80; with the majority concentrated close to Mombasa port (10-15), in the industrial centres of Nairobi (40-50), and around the periphery of Gikomba market (10-15). At their warehouse, importers employ between 3-5 local staff, as well as truck drivers, security officers, manual bale transporters and casual staff.

On average, buyers import 2-6 consignments per month usually from two contracted suppliers - one located in Europe (high priced, good quality product) and the other from either the US or Canada (lower quality, low-cost). Germany and UK product is the most popular. There are clear signs, however, that buyers are now favouring low-cost US and Canadian product, due to the Europe/UK:US/Canada currency parity. A US consignment amounts to approximately £17,000-18,000, whereas UK product can cost up to £22,000.

A large proportion of the consignment will already have been sold before arriving in Kenya. Once buyers receive the faxed packing list from suppliers, large wholesalers pay a deposit for a negotiated selection of bales from the list. Some large wholesalers purchase an entire container but the majority buy 50-200 bales at a standard fixed price (Table 3).

Table 3 Price of clothing/45kg bale

Grade 1 clothing Price per 45kg bale (Ksh)

Fast moversMen’s cotton shirts 10 000 Men’s cotton trousers 15 000 Sports T-Shirts 11 000 Women’s 2-piece suits 10 000

Slow moversWomen’s blouses 3500 Children’s rummage 3500-4000 Men’s/women’s jackets 5000-5500 Household rummage 4000



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WholesalersMost wholesalers in Nairobi (numbering at least 100-150) are concentrated around Gikomba market. Most have 2-3 regular suppliers (importers) that deliver bales to the wholesale stores up to three times a week. Large enterprises purchase a combination of high quality bales from the UK/EU and cheap, lower-quality product from the US and Canada, and sell in bulk to medium and small wholesale enterprises, as well as individual bales to retailers based at Gikomba market. Medium/small sized wholesalers and larger retailers place an order for a regular and guaranteed supply of daily bales, based on a trade-off between fast and slow moving product. In contrast, smaller enterprises with less capital stock, buy lower-quality bales directly from US/Canadian importers, and only supply to small market retailers. The majority of wholesalers employ up to 3 staff.

RetailersThere are an estimated total of 10,000–15,000 retail enterprises at Gikomba market. Women outnumber men comprising 60% of the trading population. Most retailers work six days a week on rented stands, and specialise in specific products (e.g. men’s jeans, women’s blouses, jackets). The majority of respondents operate their own businesses or rely on temporary assistance during busy periods.

At around 8am every morning retailers purchase approximately 1-3 bales from the wholesale stores. At their market stall, they ‘cut’ the bales and unpack the different qualities of clothing by separating them into 3 different piles. 1st camera, refers to high quality clothing that is immediately purchased by a ‘cameraman’ (male or female) who gets exclusive choice of the best items. 2nd camera clothing is sold for a lower price. Once the retailer has made sufficient profit from the bale, the remaining items - the 3rd camera - are usually ‘cleared’. This means they are sold in bulk to a small retailer who will often purchase up to 50 low quality garments. For example, a Ksh5500 bale of children’s rummage contains 350-400 items of clothing and typically consists of 20 1st camera items, 200 2nd camera garments, with the remainder being cleared. These are sold for Ksh100/50/15 respectively. Clearly, the most important factor determining profitability is quality. Yet, the quality of items in a bale varies considerably.

AncillaryThe SHC trade also supports a number of different types of employment that takes place on a large scale at the market site: � repairing and ironing (value is added increasing the resale price by contracting

people to improve the appearance of good quality clothes and hanging the garments on display rails)

� bag making (for traders to transport clothing to sell in rural areas) � security (to protect clothing stored at the market at night and prevent thefts during

the day) � manual bale carriers (who transport bales from warehouses to retail stands)

CustomersCustomers consist of consumers that purchase clothing for themselves and their families. Some second-hand items with desirable labels are carefully selected by ‘camermen’ and retailed in clothing boutiques in the city centre at a price premium. A



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large proportion of custom also comprises small retailers selecting 5-10 choice garments to hawk on the outskirts of the market, as well as ‘clearers’ that buy in bulk. The majority of these small retailers/hawkers either cannot afford to purchase an entire bale or they retail part-time to supplement their regular income.

The clothing that has been ‘cleared’ at Gikomba is transported to smaller markets in Nairobi and surrounding rural areas. At these locations, once the original clearer has made their profit, someone else will clear the remaining clothes from them – and the camera process starts again at another market. In this way, quality declines as the process is repeated. Eventually, the final consumer (often in rural areas) will buy low quality clothing at a very cheap price.

Regional SHC distributionSecondary literature suggests that Kenya is an important source country of supply and distribution to East Africa, as well as many other countries in SSA. Fieldwork, however, found that this is not the case. Following a wave of trade liberalisation in the 1980s/1990s, SHC tariffs in the region are relatively low, averaging 25%. Thus, countries in East Africa import SHC directly and SHC only travels through Kenya in transit from Mombasa.

Who benefits from the SHC trade?

1. UK Public - Few members of the UK public are aware that their free donations are sold at market value to the African poor. This demonstrates a clear lack of transparency in the value chain, thereby undermining the altruistic nature of donations. Nevertheless, the reclamation industry generates a significant level of employment. More than 1.5 million people are directly employed in the recycling industry worldwide, with 250,000 jobs created in Europe alone. However, such employment is mostly female oriented, unskilled and low paid.

2. UK NGOs - Used textile sales are an important source of fundraising enabling NGOs to further their charitable objectives (Table 4). The UK Association of Charity Shops (ACS) estimates 93% of their annual turnover is derived from this activity. Clearly, Oxfam (in particular) and SA benefit the most as they accrue additional funds by more direct or indirect involvement in the trade (see the following section).

Table 4 NGO revenue generated by SHC sales, 2002

Estimated total number of shops 6500 – 7000 Annual turnover of shops Over £430,000,000 Funds raised for charitable purposes in 2002-3 Over £95,000,000

However, recent events have threatened this charity fundraising initiative, i.e. the emergence of bogus ‘charity’ collections that operate solely for profit, declining stock quality and competition from low-cost new retailers.

3. The Textile Reclamation Industry –Graders are by far the largest financial beneficiaries of the SHC trade. Medium sized graders exporting 12 consignments/month generate net profits of up to



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£140,000/month; amounting to a gross profit of around 577% relative to the purchase price. This highlights the high level of value added at the processing stage, i.e. sorting and grading.

However, the UK industry has recently faced difficulties. According to the Bureau of International Recyclers (BIR), it has not achieved a profit in the last two years. The industry cites a number of inter-relating factors:

� the quality of clothing donations is declining. Blame is attributed to new, low-cost, but low-quality clothing imported from China and India and sold in UK retail outlets (e.g. Primark and Matalan). These garments are cheap but not suitable for re-use and have no resale value. Previously, proceeds made from the sale of good quality SHC had offset the cost of recycling lower-grade textiles and still generated a profit. Textile recyclers could rely on 60% good quality clothing suitable for resale with the remaining 40% incurring a price premium. This situation has now reversed;

� the high value of sterling against export competitors currencies (especially US$) has made UK products over-priced, leading to a shift in demand as buyers switch to lower-cost US equivalents;

� while the value added processing has declined, the processing costs, in terms of transport and labour in particular, have increased.

As a result, the future of the reclamation industry is now uncertain.

4. The State and Environment � the volume and value of SHC exports improves the UK’s balance of trade; � it contributes to new environmental regulation. The UK Government and EU

National Assembly have set challenging targets to increase recycling of municipal waste. By 2015, at least 33% of household waste must be recycled;

� the environment is a major beneficiary of the SHC trade. Recovering textiles and exporting them for re-use diverts them from landfill or incineration thereby reducing the contamination of surface and groundwater sources (landfill) and harmful gas emissions (incineration).

5. ImportersImporters undoubtedly provide a lucrative commodity that benefits many Kenyan people. The average net profit was recorded as Ksh149,600/consignment (£1100). Therefore, medium importers buying four consignments per month can realise profits of up to Ksh598,400 (£4400).

However, most respondents cited a number of factors that negatively impact on their business:� the cost of SHC imports is rising. Declining quality of SHC and the high value of

sterling in the UK has led to graders increasing the price/consignment. As a result, more buyers are now relying on low-cost but lower quality/value clothing from the US and Canada. High tariff duties compound the difficulties faced by importers. This has led to most importers both reducing the number of imported consignments/month and increasing the price of bales in order to cover their overheads, maintain a profit and remain in business. Indeed, during the period 2002-2004, the volume of SHC imports from the UK declined by 20.8%.



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� Due to the declining quality of UK SHC, it is increasingly common for graders to include a small proportion of low-grade clothing into a higher-grade category to maximise profit.

6. WholesalersThe financial benefits derived from the trade are dependent on the size of the wholesale business and the quality of stock. Nevertheless, a medium sized enterprise that purchases 800 bales/month can make a net profit of up to Ksh448,600/month (£3,298).

According to all respondents (5), business has declined over recent years. Blame was attributed to the tariff regime whereby duties have been raised and enforced, i.e. high import costs have led to importers charging more for SHC.

7. Market RetailersOver half of the 23 traders interviewed at Gikomba market had previously been unemployed (10) or recently retrenched (3). The remainder had been in temporary/seasonal jobs or worked in low paid service sectors. For these retailers, SHC enabled them to start their own business, from which they are able to meet all their household expenses.

On average, most retailers generate profits of Ksh1000/bale. In contrast to the low wages of unskilled/semi-skilled employees in the formal sector, e.g. factory workers who earn approximately Ksh4000-7000/month, the majority of SHC retailers relatively earn a much higher income with Ksh24,000 recorded as median gross takings. Accounting for retail overheads (table 5), net median profits amount to Ksh18,653/month (£137). This figure, however, does not capture differences in the size of the business, i.e. number of bales purchased, seasonal fluctuations, market location (central or peripheral), and particularly, quality of SHC that result in variable daily, weekly and monthly sales.

Table 5 Retail overheads

Overheads (per month) Cost (Ksh) Trading license 267 Stall rental 2000 Transport (return journey to Gikomba)

2400

Night storage 200 Manual bale carriers 480 Total 5347

The SHC trade has also increased opportunities for women to earn a living. Women in SSA are more vulnerable to poverty than their male counterparts. They enter the trade because it is relatively non-gendered and accessible to anyone regardless of formal training and access to productive resources. The 12 female respondents entered the trade to:� supplement their family income (5); � bring money into the household if their partners were unemployed (4); or,



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� become self-reliant by owning their own businesses and becoming self-employed (3).

Nevertheless, all respondents perceived that business has declined in recent years. Table 6 outlines the main contributing factors.

Table 6 Perceptions of declining trade

Impacting factors No. of respondents affected

Declining quality 18 Increasing bale prices 15 Rising poverty and declining demand

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Declining supply 4

The majority of respondents cited declining quality as the main problem affecting their business. Research has shown that the quality of SHC is the principal factor affecting income generation. With UK quality declining, most retailers now rely on US and Canadian low-value product. Since the tariffs have been enforced and prices raised, retailers have been unable to pass the cost further down the chain on to consumers during a period of rising poverty and low consumer purchasing power without the risk of pricing themselves out of the market. Thus, they have had to absorb the costs.

8. Ancillary employmentThe SHC trade generates an important labour network in terms of work in warehouses, transport, ironing, repairing, bag making, security etc. Much of this employment, however, is relatively low paid and temporary in nature. Nevertheless, it still creates welcome income generating opportunities. At Gikomba market, although ironers and repairers make Ksh3600/month net profit (£26), the declining quality of SHC along with the higher price of bales has had a knock-on-effect with market spin-off activity. Traders can no longer afford their services and the increasing amount of poor quality clothing has removed the incentive for ironing and repairing.

9. ConsumersIn Kenya, by the mid-1990s, SHC accounted for 50% of the textile market, locally produced clothing took 30%, and cheap new imports from the Far East, Europe and the US comprised 20% of the domestic market.

Considering the prevalence of extreme poverty, the popularity of SHC as a cheap alternative is clear: a man’s new shirt costs approximately Ksh350-400 from a formal retail outlet, whereas a second-hand shirt sold at a market can be purchased for Ksh50. New Asian imports are also relatively more expensive (Table 7).

SHC has allowed very poor people to clothe themselves and their families who (in the absence of the trade) could not afford to buy any clothing at all (3). The majority of respondents, however, were able to combine their purchases by selecting second-hand clothes for informal occasions and new garments from retail outlets for formal,



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‘special’ occasions (7). This meant they could save their limited resources to finance other basic requirements.

Table 7 Price comparisons – new clothing, Asian imports, SHC, (Ksh)

Clothing type Locallyproduced

Asianimport

SHC

Men’s shirt (long sleeved)

1000 400 50

Men’s shirt (short sleeved)

700 300 50

Bras 250 150 30 Women’s suit 6000 3000 80? Men’s T-shirt 250 100 25 Men’s trousers 800 450 35 Women’s dress 1100 750 45

The trade also gives customers the opportunity to generate an income by reselling items of clothing at markets in cities, towns and rural areas. At Gikomba, over half of the customers interviewed (12) supplemented their weekly wage by buying clothing in bulk to sell in their hometown.

10. The Kenyan StateThe SHC trade constitutes a significant source of revenue to the State, i.e. import duties are set at Ksh25/kg. Considering Kenya imported 67,000 tonnes of SHC in 2002 alone, the trade clearly provides an important source of economic revenue.

The trade also provides much-needed funds for local city councils via trading licences and rents per stall.

ConclusionThis study shows that the textile reclamation industry is by far the largest financial beneficiary in the SHC value chain (Table 8).

Table 8 Monthly net profits

Enterprise Net profit per month/£

Profit per month/%

UK Grader 140,000 94.7 Importer 4400 3 Wholesaler 3298 2.2 Retailer 137 0.1 Total 147,835 100

Their commercial operations support charity fundraising and have positive environmental benefits. The current situation, however, indicates that the reuse industry may not be sustainable. Indeed, with the demise of the World Trade Agreement on Textiles and Clothing on 31 December 2004 that phased-out restrictions on textile and clothing imports from developing countries, the crisis may



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escalate. Cheap, low-cost clothing UK imports from developing countries (especially China and India), are predicted to increase.

Clearly, control of the value chain is vested with suppliers (demand outweighs supply) but they do not co-ordinate it, i.e. their involvement ends following export. However, the decline in UK SHC quality has had a knock-on-effect in Kenya as the costs associated with lower value product are passed down the value chain ending with retailers.

Nevertheless, in relative terms, the trade has had a very positive impact on poverty alleviation. At a time when the Kenyan economy is not capable of providing substitute jobs for the unemployed, the SHC trade is soaking up labour and offering relatively lucrative returns, as well as providing affordable clothing to the mass of the population. It follows, therefore, that if the UK reuse industry declined (as graders predict), the poverty alleviating nature of the trade in Kenya would also diminish.

5. Activities� Initial results have been shared with academics at the Institute of Development

Studies, Nairobi � Preliminary results were presented at the annual BIR Conference at the Textiles

Division Roundtables Session on 29 October 2004 � The principal researcher has been a member of the CECOP (The European

Confederation of Workers’ Co-operatives, Social Co-operatives and Participative Enterprises) steering committee in Brussels (02/05 –01/06), informing debate on the EU textile recycling crisis and the impact on SSA. Research results were also presented at the CECOP European Textiles Conference, 13 October 2005, Brussels

� Presentation at an Oxfam UK seminar on ‘Second-hand Clothing: Impacts on Developing Countries’, in Dakar, Senegal on 2-3 June 2005

� Networking with the WTO Secretariat (Economic Research and Statistics Division), IDEA Ambiente (Italy), International Red Cross (Denmark),

6. Outputs Preliminary research results have been cited in European recycling media: � EUID Recycling and Waste Management Newsletter, pp9, Issue 23, December

2004. European Economic Service: Gernsbach, Germany � Materials Recycling Week Magazine, pp6, Vol. 183, Issue 12, March 2004.

MRW: Surrey, UK � Recycling International (2005), Whose to Bless and Whose to Blame? November

2005, Issue No.9, pp42-43, Netherlands� An eight page Note to CECOP providing the background and context to the SHC

trade in East Africa

7. Impacts � Research results will be used by BIR to lobby the EU Commission to support the

EU textile recycling industry



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� The UK Textile Recycling Association will include this research in a conference to lobby Government to support the future of the UK recycling industry

� Oxfam UK has used this research to support their direct involvement in the SHC trade.

� The WTO Secretariat (Economic Research and Statistics Division) are using the results to inform a pilot study on the impact of SHC imports in East and Southern Africa with regional partners the Southern African Trade Research Network

8. Future Priorities � It would be interesting to evaluate the extent and significance of the trade in rural

areas in order to widen the scope of the study� Future work could also usefully compare the trade in Kenya with other countries

or regions in SSA� Further investigation into the ethical role of NGOs in the SHC value chain



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Annex 1: The Target Population

UK

Key Informants:- The Textile Recycling Association – Terry Ralph, President - The Textile Recycling Association – Alan Wheeler, National Liaison Manager - The Bureau of International Recycling – Mr Schepke, President - The UK Charity Shop Association – Lekha Klouda, President

The Reclamation Industry/Graders- Ragtex UK – Gerald Cemmell, Managing Director - Kettering Textiles Ltd. – Louis Orsi, Managing Director - Oxfam Wastesaver - Tony Clark, Manager - Sam Greenberg Ltd. – Benson Greenberg, Managing Director

Kenya

Key Informants- Mombasa Department of Customs and Excise – Mrs Msando-Ahago, Assistant

Commissioner - Department of Trade and Industry – Mr Otieno, Director of Internal Trade - Department of Trade and Industry – Mr Kimani, Manager of the Textile and

Clothing Division - Kenyan National Chamber of Commerce – Mr Muiruri, Information and Public

Relations Manager - Nairobi City Council – Mr Maroa, Senior Superintendent (Markets and Trading

Services) - Nairobi City Council – Mr Ngari, Director in Charge (Licensing Office) - Gikomba Market – Mr Myere, Gikomba Vice Chief

Importers- Ray Holdings (Nairobi) – Mr Tswana, Managing Director - Secotex (Nairobi) –Mr O’Hara, Managing Director - Canimbex (Nairobi) – Mr Finlay, Managing Director - Nehanda & Co. (Mombasa) – Mr Blatch, Managing Director

Wholesalers (Gikomba) - 6

Retailers (Gikomba) - 23

Ancillary Workers (Gikomba) - Ironers (2) - Repairers (2) - Security (2) - Bag Makers (1) - Bale Carriers (1)

Consumers (Gikomba) - 21


Documents

Who Benefits from the Second-Hand Clothing Trade? The Case ... · REFERENCE No. RES-000-22-0617 19 Who Benefits from the Second-Hand Clothing Trade? The Case of Kenya 1. Background