Kenya to build six tanneries as global leather exports rise
Factory attendants at a tannery verify the quality of hides at the receiving point. Kenya is building six tanneries to boost processing of leather in the country following a 600 per cent growth in exports of hides and skins in 2011 from the previous year. File
Kenya will set up six tanneries to boost processing of leather following a 600 per cent growth in exports of hides and skins last year compared to 2010.
Kenya Leather Development Council said that it would put up tanneries in six towns including Garissa, Isinya, Mogotio, Wote and Kajiado at a cost of Sh150 million.
The Economic Stimulus Package funds will be used to build the factories, which are expected to be complete before end of the year.
“We intend to increase returns per tonne of leather through value addition to avoid losses from exports of raw materials,” said Dr Mwinyihinja Mwinyikione, the chief executive at the council.
The tonnage of semi-processed hides and skins exports increased by 600 per cent from 322 tonnes to 2,250 tonnes last year.
This was partly spurred by a 35 per cent increase in the price per tonne of the commodity in the international market.
This will increase the number of tanneries from the current 13 to 19 thereby raising leather exports while supporting local shoe manufacturing.
In East Africa, Tanzania has only two tanneries while Uganda has four making the region a potential market for Kenyan leather products.
The proposed tanneries are expected to boost value addition and increase finished product exports.
Shoe exports from Kenya amounted to a paltry 47,000 pairs while about three million were sold in the domestic market.
Kenyan manufacturers, however, face high cost of production resulting in high prices of finished products.
For instance, the average price of shoes made locally is Sh1,200 a pair while imported ones cost about Sh800, making them largely uncompetitive in the international market.
However, the real challenge is that local manufacturers do not produce quality shoes that can compete effectively on the global market.
The industry currently employs about 16,000 people with a total turnover of Sh6 billion annually.
