Sewing Success - Investing in Women for a Stronger Economy

[News anchor: The unemployment crisis continues to cast a shadow on the lives of thousands of Kenyans in the country. Coupled with the rising inflation and harsh economic times.....] 

Lindy Mtongana: In urban centers like Nairobi, unemployment is hard to ignore. It's not uncommon to see well-dressed graduates filing in and out of office buildings, resumes in hand to apply for jobs. Young men huddled at the gates of construction sites and factories, hoping to get picked up for the day. Women walking to affluent suburbs to offer cleaning services. Others begging at traffic lights, small children in tow. And on street corners, park benches, bus stops and kiosks, men and women idling, waiting, hoping that today will be different.  

Lindy: According to the World Bank Group, by 2033, 1.2 billion young people will enter the global workforce and only about 420 million will find jobs. This challenge is often more pronounced for women who continue to face barriers to employment. And ultimately, employment isn't just about earning a paycheck, it's about dignity and empowerment. This is IFC Audio Stories. I'm Lindy Mtongana. This week we're in Nairobi, Kenya, where an IFC partnership in the garment industry is tackling the jobs deficit head on.  

Lindy: The hum of sewing machines fills the factory floor of Royal Apparel EPZ Ltd. as thousands of workers stitch together clothing for global brands. If you own Perry Ellis or Walmart clothing, Dickies, Levi's or Wranglers, check the label. If it says Made in Kenya, it may have been crafted right here. 

Omprakash Shukla: Our people are so skilled, like they can handle any product anywhere,  anytime, any day. 

Lindy: That’s Omprakash Shukla, Chairman and founder of the Royal Group of Companies. An Indian national and trained accountant, he moved to Kenya in 2005, bringing with him a background in export and a growing passion for the garment industry. What started in a rented shed has grown into a major force in Kenya’s textile sector — and today, he’s a key player shaping its future. 

Omprakash: So we started with a very humble beginning in 2010 and with a very small operations, say 100 machines and providing jobs to 225 people at those times. And with lot of struggles, challenges and skill development today here we are running like 2,500 machines and providing jobs to over 5,800 workers. Out of those 5,800 individuals, like 70% are women. In 2024 we did a management accounts, and we have seen that we have reached $50 million US dollar turnover. And 2025 as we planned, we are looking for 80 to 100 million US dollar turnover. And by 2027 / 2028 we are targeting to reach $500 million turnover. 

Lindy: An impressive trajectory for a business and one that is also addressing a pressing challenge in Kenya, the gender gap in employment. According to World Bank Group data, 62% of women in Kenya are in the workforce, the vast majority, 73%, are in vulnerable employment, meaning informal, low paying, unstable jobs, often with little security or safety nets. 

It's for this reason that Mr. Shukla is about as proud of his business as he is of the transformation he's seen in his staff's lives. 

Omprakash: When I came to Kenya and when I started my own company, I've seen the people who are fearing to even use the banking business and all. In fact at that time when they joined they were very young so it was very difficult for them to carry themselves to, to even take care of the family. But today these are same people, they're carrying the children today they go to the school. So we feel proud of the transformation what we have seen today, they are leading their families. 

Catherine Wamboi: I came here as an intern and upon finishing my three-month contract I was given a permanent job. 

Lindy: That was nine years ago. Catherine Wamboi has since worked her way up to board secretary for Royal Group.  

Catherine: In Kenya it's not easy to get a job as being ladies you find there is a lot going around that we have to bribe to get the job. But fortunately at the EPZ and mostly at Royal, I've not seen that happening. You get it because you get the capability, not because you know anyone. So as much as you do your work then you are able to be promoted internally. Royal Group has given me the growth that I require and has made me the person maybe who I would like to be as a lady.  

Lindy: Logistics manager, Sharon Maithia joined Royal in 2012. 

Sharon Maithia: My life has changed since I've been able to support my family. I've also been able to be supported by the company to even obtain property for my kids, a house. So I've achieved so much. I've also been able to pay school fees for my kids comfortably. I came here when my kids were in preschool, right now they're in high school. 

Lindy: Sharon's own success has propelled her to mentor and pave the way for younger women in the company. 

Sharon: I work with four women in my department, the youngest is 23 years. I promoted her internally, I taught her the procedures and at least now she's stable. So, we encourage like internal promotion to young girls. In the current economy status, everybody has to bring something to the table. So, women’s contribution also counts and they are able to support their family when they are stable. 

Omprakash: For any business you need to have a better environment and for better environment you need a better society. And for better society you need a better community and better community you need a women. When you empower one woman, basically you are empowering like 10 individuals indirectly. 

Lindy: With support from IFC, Royal Apparel is expanding. A $15 million investment will help the company create roughly 4,500 new jobs and scale up production. Thus expanding its footprint in the textiles value chain. 

Omprakash: Because creating jobs is just the beginning. But to sustain and maintain for the longer term and give consistency - so that these women can support to their families, gives leadership to their families – we need to do so that they can retire here in this company. 

Lindy: The IFC investment includes a $5 million loan from the Canada-IFC advancing Gender Equality, Resilience, Opportunity and Inclusion Worldwide Facility  or Canada GROW fund. IFC investment lead on the Royal engagement Khevna Naran tells me Royal Apparel was a strong candidate for IFC funding because of its export potential and its capacity to strengthen Kenya's supply chains. But the impact doesn't stop there. IFC is working with Royal to ensure a workplace where women can thrive.  

Khevna Naran: We have now dedicated interventions to support employers and key industrial partners such as Royal in increasing the number of women in their workforce, providing better facilities for women in their in their workforce, as well as helping the upskilling of women within their workforce. And Royal's commitment to this was very strongly aligned with IFC's current approach on gender Another factor to also consider is that Royal has committed to sustainable manufacturing and is looking to use the IFC investment to better improve their operations with renewable energy, water treatment, as well as making sure that their buildings are EDGE certified and therefore have sort of green practices in the way that their operations are running. 

Lindy: EDGE is a green building certification system developed by IFC focused on making buildings more resource efficient 

Lindy: IFC's partnership with Royal Apparel shows how investment in manufacturing drives jobs, sustainability and economic growth. With IFC's support, the company is scaling up while strengthening Kenya's supply chains and creating real job opportunities.  

Omprakash: The IFC, they believe in our vision, what we have, and they believe in our growth. And they believe in the dream, what we have planned for the better future for all these people. So IFC coming in plays a very important, very crucial role in our development. 

That's it for this episode of IFC Audio Stories. I'm Lindy Mtongana. Thanks for listening