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    Kenya Government Invested Heavily In Revitalizing Leather Industry

    2010/8/30 15:22:00 63

    Leather Industry Investment Market

     


    August 30th, a period of time, Kenya

    Leatherwear

    The production situation is gratifying.

    In order to further accelerate the development of leather industry, the Kenya government recently announced the appropriation of 175 million Kenya shillings (1 US dollars or 80 Kenya shillings) for five new mini leather processing plants and supporting the development of Kenya leather industry.


    According to the data provided in the 2010 annual economic investigation report, the leather and leather shoes production in Kenya in 2009 has made remarkable achievements, with a production growth rate of 36.5%, of which footwear production growth rate is as high as 46.5%.


    In the 90s of last century, it was not adapted to fierce competition.

    market

    Competition, Kenya leather industry is on the brink of collapse.

    Domestic leather practitioners turned to the developed countries to export raw skins, resulting in a sharp reduction from 12 to 4 tanneries.


    To reverse this situation, the Kenya government introduced new measures in 2005 to impose a 20% consumption tax on raw leather exports.

    Affected by this, Kenya leather practitioners began to export.

    Raw material

    Turning to produce leather products with high added value.

    Statistics show that after the introduction of the consumption tax, Kenya's export of raw leather has dropped from 18542 tons in 2004 to 841 tons in 2009.

    This has made the leather industry of Kenya take the first step out of the predicament.

    Since then, with the support of the government and sponsors, Kenya has actively developed the leather processing industry and created 45 billion Kenya shillings for the country.


    Today, experts are confident of the development prospects of Kenya leather industry. They believe that three factors will help revitalize and flourish the leather industry in Kenya.

    The first is the increasing export tax on raw leather export.

    The government of Kenya increased the export tax on leather products to 40% again in 2006, and is still on the rise.

    The two is the government investment and the establishment of specialized agencies to help the development of the leather industry.

    The government of Kenya has set up a management committee specially responsible for the development of leather industry.

    The three is the positive support from the United Nations Industrial Development Organization and other sponsors to the leather industry in Kenya.

    Experts believe that if we seize the opportunity, not only will Kenya's leather industry develop vigorously, but it will also help many Kenya people living in arid and semi-arid areas get rid of poverty.


    Nevertheless, experts from the leather industry association of southeast Africa pointed out that there are still problems to be solved in the development of leather industry in Kenya, such as the low price of leather products, the enthusiasm for production, the lack of knowledge of animal husbandry, the right way to slaughter livestock, and poor skin grinding technology.


    In order to get rid of the bottlenecks in the development path, the government of Kenya has opened a leather specialized course at Nairobi University, aiming at training high-level technical talents to meet the needs of producing high-grade leather products, and further promoting the revitalization and development of Kenya leather industry.

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