Kenya to set up new Leather Development Council and new tanneries

07/01/2010

The Kenyan government has said it plans to grow the country’s leather industry by as much as 50% over the next five years with the aim of making leather a major contributor to the economy.

The industry ministry said on January 7 that it planned to establish a Leather Development Council to coordinate activity in the country’s leather industry and help it become competitive in the global market.

Permanent secretary, Professor John Lonyangapuo, said the council would formulate policies that would promote improvement in the quality of Kenyan hides, skins and leather. He commented: “We expect earnings from this sector to swell significantly if we can increase the amount of value addition that goes to our hides and skins.”

In 2008, Kenya’s export earnings from raw hides and semi-finished leather were just over $50 million. The government has been working with the United Nations Industrial Organisation (UNIDO) since 2004 to improve the leather industry’s performance. In that time, the proportion of the country’s raw hides processed in Kenya has risen from 75% to 90%, although progress last year was slower than expected owing to drought.

One of the steps the government has said it will take will be to set up a number of small tanneries, especially in the arid and semi-arid areas of the country, to help prevent the quality of hides and skins from dropping too much.

China is the top importer of Kenyan hides accounting for 60% of exports at the moment, while 30% go to India. The other 40% go to Thailand, Vietnam and Italy.