Leather value chain presents good opportunity for economic transformation, Mwige

Source: Capital FM Kenya
Author: Moses Muoki

NAIROBI, Kenya, April 26 - The Kenyan Leather industry is a priority value chain with a high impact to drive economic recovery and transform the country into a middle-income status by 2030.

Speaking during the Ruwaza forum in Nairobi, Kenneth Mwige, the Director General of the Kenya Vision 2030 Delivery Secretariat noted that high participation of micro, small and medium enterprises (MSMEs) within the Kenyan leather value chain provided opportunities for industrial transformation and economic transformation.

"Leather sector's contribution to Kenya's economy currently stands at Ksh.10.6 billion and with exports ranging Ksh. 2-3 billion per annum in the last five years. However, most of Kenya's exports have been in the form of unprocessed, raw hides and skins," he said.

He added that the government is targeting to increase income from leather to Sh 120 billion and increase job opportunities from 17,000 to 100,000 jobs by availing 3 million hides and 18 million skins to tanneries.

"Value in leather trade remains low representing about 0.3 percent of GDP and 0.7 percent of formal employment, this implies that there is a large unutilized potential for the sector to improve livelihoods, create employment, tax revenue and foreign exchange," Mwige added.

Despite having the fifth highest cattle population in Africa, the value derived from Kenya's leather trade remains low, representing only a fraction of the country's GDP and formal employment.

The main challenges in the sector are high levels of wastage, inadequate MSME support, smuggling of raw materials, minimal value addition and lack of information especially in the rural economies, Arid and Semi-Arid Lands (ASALs).

Stakeholders who attended the forum included representatives from the Vision 2030 Delivery Secretariat, Kenya Institute of Public Policy and Analysis (KIPPRA), Kenya Leather Development Council, State Department for Industry, Kenya Industrial Estates and MSMEs in the leather industry.