Industry in Kenya requires more incentives
The leather industry in Kenya holds much potential in terms of job creation and foreign exchange earnings, a supply chain analyst in the African country has said.
Dr Alfred Muthee, an advisor the ministry for agriculture, said in a presentation in Nairobi at the start of July that the potential was there, but that for it to be realised, the leather sector in Kenya needed more incentives to catch up with its competitors in the international market.
He said: “If Kenya is to penetrate the market in the European Union, it has to compete with China and Vietnam."
He said that although an increase in export duties on raw skins and hides in 2006 to 40% had helped raise value add and aided in the revival of local tanneries, more incentives were needed.
Last year, the country exported $45.8 million worth of leather, a 54% increase compared to 2006.
Since 2003, six tanneries have opened up or reopened, bringing the total number operating in the country to 12.
