The Mombasa branch of the Kenya National Chamber of Commerce and Industry yesterday backed the weekend closure of a Chinese company linked to clothing imports for re-export to the US under the African Growth and Opportunities Act (Agoa).

Branch secretary Alex Mwangeka said the Government had lost millions of shillings through such imports.

On Saturday, Trade and Industry minister Mukhisa Kituyi ordered Lihua Garments - operating from Mombasa's Export Processing Zone - closed and its directors arrested.

Mr Mwangeka said Kenya risked losing the benefits of Agoa - a US Congress piece of legislation - if it fails to take drastic measures against companies which conduct business unprocedurally.

"Though more than 400 workers have lost their jobs, the chamber will not protect any illegal business," he said.

He absolved other factories from similar malpractices, saying they had maintained a high level business integrity.

The minister cancelled the firm's trading licence after it was found importing ready-made garments.

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