Economy
Kenya losing billions over poor quality leather, Kebs says
Friday February 23 2018Kenya loses Sh4.2 billion annually due to production of poor quality hides and skins.
Kenya Leather Development Council (KLDC) Charles Ndung'u said mismanagement of slaughter houses had affected the quality of skins produced in the country.
“Kenya is losing Sh4.2 billion annually because of mismanaging slaughterhouses in the country. The quality of the skins produced form these slaughter houses is poor and cannot gain any good prices or properly used for processing.
"We need to work hard and make sure the quality of hides and skins meet the required international standard,” said Mr Ndungu.
The Kenya Bureau of Standards (Kebs) managing director Charles Ongwae also said most hides and skins produced in the country are of low quality and thus fetch low prices.
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Rejected
He said many leather processing firms were rejecting locally produced hides and skins and opt for imports due to poor quality.
Mr Ongwae blamed poor methods of flaying, preservation and declining number of curing premises for the low quality hides and skin.
He said 14 per cent of cow hides, 34 per cent of sheep and 29 per cent of goat skins do not reach the commercial channels as they are disposed after slaughter at home.
“The decline is due to erratic price patterns, poor market information system and lack of incentive to the primary producers,” he said.
Mr Ongwae's speech was read on his behalf by Kebs Coast regional manager Martin Nyakiamo, during a meeting with stakeholders in the sector at Kebs office in Mombasa.
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Taxes
He said the government had to increase the export tax on raw hides and skins from 40 per cent to 80 per cent to encourage value addition for local products.
According to the 2009 census, Kenya has about 17.3 million cattle, 27 million goats, 17 million sheep, 2.9 million camels and 335,000 pigs.
“The country also produces skins from emerging livestock such as crocodiles, Nile Perch, rabbits and ostriches among others. With such resources, I am sure we can achieve more for this sector if we put the right mechanisms and policies in place,” he said.
Kebs said it has already developed and adopted more than 200 standards for leather and its products to enable entrepreneurs not only trade locally but also provide platform for the goods to access a larger market through export schemes.
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