Days of raw animal skin smugglers are numbered as the government seeks ways to clamp down on them.
Trade and Industry Cabinet Secretary Peter Munya said the ministry intends to make the going tough for smugglers through a raft of punitive measures to be released in a month’s time.
“In addition to 80 per cent duty on exported raw hides, the regulations on smuggling will require the licensing and vetting of all exporters even as penalties for violators are going to be increased,” he said.
Mr Munya added that the move will aid the growth of local manufacturing. As such, he said the State seeks to discourage importation of leather products by pushing up duty by 10 per cent, from 25 to 35 per cent.
This comes as industry data shows that Kenya imports more than 40 million pairs of shoes annually. In Kenya, due to lack of capacity, the country contributes a paltry 3.5 million pairs to the total stock of leather shoes estimated at 15 million annually.
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This has forced the Ministry of Trade to launch several countermeasures which include zero-rating some imported leather accessories and machinery. It is also developing leather parks which are expected to boost local shoe production by more than 20 million annually.
According to Munya, the ministry also seeks to set up at least three such parks by 2022.
Other non-tariff measures include the setting up of more than 5,000 cottage industries as well as the improvement of the leather sector value chain.
Reports indicate that about 90 per cent of leather in the country is semi-processed, which denies players more value for money.
Leather Development Director Joseph Mbogo said such value chain interventions include breed improvement and training on inspection of hides and skins.
“Of late, the quality of hides and skins has gone down due to challenges such as animal and slaughter defects,” he said.
Mbogo also said the State Department of Livestock intends to diversify the production of hides and skins to ensure sustainability.
The leaders were speaking on Friday at Bomas of Kenya during the opening of the first leather and leather products conference which is expected to go international by next year.
Competitiveness
To be organised by the Leather Apex Society of Kenya, the umbrella body of leather associations, together with the Centre for Business Innovation Training (CBIT), the Kenya International Leather and Leather Products Trade Fair (Kilele) is expected to rival Ethiopia’s All Africa Leather Fair.
Leather Apex Secretary-General Beatrice Mwasi said the event is set to explore ways of enhancing the competitiveness of the leather industry.
“Leather is one of the most widely traded agro-based commodities in the world generating more than $150 billion annually. Yet, Kenya’s contribution is only 0.14 per cent or $140 million,” she said.
