An annual report by the UN Conference on Trade and Development (UNCTAD) said although Kenya had an opportunity to exploit lucrative export markets, high cost of production mainly linked to the high pay bills remained a major deterrent. The cost draw back is captured by a UNCTAD case study of the textile industry in Kenya and Bangladesh, which share a technological and economic platform even though the latter has since moved to position itself among the leading exporters of garments and textiles in world. Findings from the study showed that on average the production cost is three times higher in Kenya than in Bangladesh, with the main determinant being the wage cost which is 138% higher locally than in Bangladesh.