Kenyan tanneries lay off 400 amid concerns over hide exports
05/09/2012
The Tanners Association of Kenya chairman, Mr Robert Njoka, told Kenyan newspaper Daily Nation they had laid off 400 workers in six months due to falling production levels.
Last year, footwear production declined 12.2% after three years of growth, although exports of finished leather grew 5%, due to five government-initiated processing factories.
Export of raw skins and hides rose from 322 tonnes in 2010 to 2,250 tonnes in 2011, according to the 2012 Economic Survey, after the government changed tax levels to boost the industry.
However, the paper reported there are concerns that hides are not being accounted for properly in the export process.
“The government is estimated to be losing Sh600 million ($7 million) through unscrupulous practices of underdeclaration of value and false weight entries. This is putting pressure on local tanneries in terms of procuring raw materials to retain the current number of workers,” said Mr Njoka.
The director of veterinary services, Dr Peter Ithondeka, said he had arranged a meeting with stakeholders to talk about the concerns. “We are aware of the complaints, although we are yet to get official communication. If we find out that it is true, we shall not protect anyone doing wrong,” he said.
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