A garment manufacturer based in Kenya’s Export Processing Zone, Royal Apparel EPZ (RAL), plans to expand its operations by constructing a new factory with a $15 million (Sh1.94 billion) loan from the International Finance Corporation (IFC).
The IFC loan will support the acquisition of new equipment and the establishment of additional sewing lines, significantly enhancing RAL’s production capacity. Additionally, the funds will be used to construct a three-kilowatt-hour (kWh) rooftop solar power plant to reduce the company's energy costs, and a textile wastewater effluent treatment plant with a capacity of 230 cubic meters per day.Pending approval by the IFC board, the loan will be complemented by $5 million (Sh645 million) in equity provided by RAL to expand its operations.
The expanded facility is expected to create 3,700 new formal manufacturing jobs, alongside numerous indirect employment opportunities. The project would primarily benefit people from underserved, low-income communities with limited education and skills, many of whom have no formal employment history. Beyond job creation, the facility will also focus on improving employees’ technical and soft skills through various training programs.
Founded in 2021 and fully owned by Kenyan businessman OmprakashShukla, who has 32 years of experience in the textiles and apparel sector, RAL produces woven pants, knit tops, high-end hospital scrubs, and undergarments for global apparel brands such as Dickies, Michael Kors, The Children’s Place, and Walmart. RAL is part of the RAL Group, which includes its sister companies, Royal Garment Industries EPZ and Royal Clothing EPZ, and operates four facilities within the EPZ.
According to the IFC, the new factory will improve the group's productivity and competitiveness in the apparel industry through optimisation of sewing line staffing, automation of specific tasks, and the integration of real-time data analytics.
