This archive report was first published on 17 June 2020.
By BEATRICE MWASI
As the COVID-19 pandemic continues to disrupt global trade, Kenya's leather industry is seeking to capitalize on the opportunities presented by the crisis.
With international trade slowing down, there has been a shortage of many products, including leather goods. However, this has also led to an increase in demand for locally produced leather products, which could be a silver lining for the industry.
According to Ms. Mwasi, secretary-general of the Leather Apex Society of Kenya, the country has the potential to contribute more to the African leather sector, despite having the third-largest livestock production in the region.
Kenya produced 2.6 million bovine hides last year, as well as 3.5 million goatskins, 2.4 million sheepskins, 500,000 camel hides, and 1,000 crocodile skins. However, most of these products are imported as secondhand goods, with the local industry making only 3.5 million pairs of leather shoes in 2016.
With the pandemic and questionable hygiene standards associated with secondhand items, importation of shoes and other apparel has been halted, increasing local demand. The leather industry contributes 1.5% of Kenya's GDP, with trade volumes worth Sh14 billion and employing 22,000 workers, mostly in the micro, small and medium enterprises (MSMEs).
Under the 'Big Four Agenda', the country intends to build the industry three-fold to trade volumes of Sh50 billion by 2022, with manufacturing contributing 22% of GDP, up from 15%.
However, the industry faces several challenges, including poor quality of hides and skins, limited value addition, unfair competition from imports, and poor quality leather. The pandemic has particularly hit tanneries, which depend on exports for 90% of sales, with most of these establishments now operating at 10-15% capacity.
Ms. Mwasi emphasizes the need for the government and other stakeholders to circumvent these challenges and accelerate demand for local products. She suggests that the 35% duty on imported leather products and the presidential directive for procurement of local footwear for the disciplined forces should be maintained.
Ms. Mwasi is an innovation and management specialist and secretary-general of the Leather Apex Society of Kenya.
