info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Image from startyourindustry.com
The umbrella association said on Monday that Kenya's leather industry is seeking joint ventures with Chinese companies to increase local value addition.
Beatrice Mwasi, secretary-general of Leather Apex Society of Kenya in Nairobi said that currently over 95 percent of leather is exported before being fully processed due to lack of capacity. "We are seeking to partner with Chinese firms so that we can wean ourselves from exporting semi-processed leather products."
Kenya is a net importer of finished leather goods despite having adequate raw materials in the form of livestock to be self-sufficient. Kenya's key export market for semi-processed leather is China and India.
The leather industry in Kenya is mainly dependent on the large livestock resource base of Cattle, Goats, Sheep and Camel. The industry also derives its raw materials from emerging livestock such as fish (Nile perch), farm Ostriches and farm Crocodiles.
The sector’s contribution to Kenya’s economy currently stands at Kshs.10.6 billion and creates employment to over 22,540 people directly and indirectly.
Hides and skins subsector
The hides and skins trade has gone through phases; witnessing positive impact on the sector. The sector transformed from a purely raw material source to relatively modern industry adopting the changing technology and market trends. The transformation saw the country act as a tanning hub for the region through procurement of hides and skins and supply of leather in both local and regional markets. In addition, it experienced exports of semi- processed leather (wet-blue) to the international markets.
Tanning subsector
Currently, tanneries in Kenya have installed capacities standing at 60% for wet-blue, crust leather at 25% and finished leather taking 15%.
Leather goods and footwear subsectors
The leather goods and footwear subsectors in Kenya have exhibited a lot of potential for growth with an increase of leather goods units to 85. There are 25 enterprises engaged in formal footwear and leather goods manufacturing. This has a utilization capacity of more than 70%. Apart from the formal sector, there are hundreds of informal footwear manufacturing units/ Small and medium enterprises (SMEs) which undertook manufacturing of 55-60 percent of the local footwear production.
