State's new plan to create 100,000 jobs in leather sector

Deputy President Kithure Kindiki during a inspection tour of the Kenya Leather Industrial Park (KLIP) in Kenanie, Machakos County on January 06, 2024. He was accompanied by Acting Cabinet Secretary for Agriculture and Livestock Development Aden Duale, Principal Secretary for Livestock Development Jonathan Mueke and other senior government officials. [Kevin Macharia, Standard] The government plans to create up to 100,000 jobs in the leather sector, positioning it as a key industrial boost to the country's exports as it targets Sh120 billion in revenue. The construction of 10 manufacturing facilities, completion of the Kenya Leather Industrial Park, and setting up tanneries are some of the strategies the government seeks to employ. The tanneries are to be set up in the counties of Isiolo, Uasin Gishu, and Mombasa. Leather and leather products are some of the key value chains under the Bottom-up Economic Transformational Agenda (BETA). It is also a key value chain in the manufacturing sector, besides textiles and apparel, dairy products, edible and crop oils, tea and coffee, sugar and building and construction materials. The government plans to connect small businesses in the sector with State institutions, including the military and police to spur uptake and ensure there is a market for leather products. This is in addition to encouraging the export of leather products as it also vows to look into unfair import trade practices that threaten the sector. There are also plans to review the Hides, Skin and Leather Trade Act (Cap 359) to attract more micro, small and medium enterprises (MSMEs) in the leather sector value chain business. The 2025 Budget Policy Statement drafted by the National Treasury says the review of the Act will help attract more MSMEs into the sector. "To enhance production and improvement of quality of raw materials for processing and value addition, the Government will: review Hides and Skin and Leather Trade Act (Cap 359) to reinstate licensing of the value chain actors and attract more MSMEs in the value chain," reads the statement. In addition to the Hides, Skin and Leather Trade Act, the government also wants to finalise the Kenya Leather Value Chain Development Policy and the Kenya Leather Development Authority (KLDA) Bill. These efforts are being made to improve the legal and policy framework of the leather sector. The statement also highlights the government's intention to map and sensitise MSMEs on leather value chains by coming up with policies and disseminating them to small businesses. It will also develop hides and skin collection centres, supporting collection, preservation and delivery of hides and skins to tanneries and building the capacity of MSMEs to improve the quality of hides and skins, leather and leather products. It notes that the government has invested resources towards the upgrade of the Ewaso Ng'iro South Development Authority's leather factory, aimed at transforming the leather and leather products value chain. This is through the acquisition of modern equipment, the building of a footwear factory, and the mopping up of hides and skins. "Machinery for increasing processing capacity at the factory has already been procured and installed," the statement says. To supply quality hides and skins, 703 flayers have been trained and subsidised flaying equipment provided to 680 slaughter points. The construction of the Kenya Leather Industrial Park at Kenanie, Machakos County is also 85 per cent complete. The park will have a common effluent treatment plant, two tanneries, two leather manufacturing plants and 100 acres for investors to set up leather factories. "The government will build on the ongoing interventions geared towards boosting productivity along the leather and leather products value chain; increasing income from leather to Sh120 billion; increasing job opportunities from 17,000 to 100,000 jobs; availing three million hides and 18 million skins to the tanneries; and increasing recovery of hides and skins from abattoirs, slaughterhouses and home slaughter and consequently increasing tannery utilisation from 25 per cent to 100 per cent," the statement says. The current income from the sector is Sh15 billion according to the State Department for Industry. According to the plan, the State Department is developing local capacity to handle hides and skins to provide quality raw material, tanning as well as the local manufacturing of finished leather goods such as shoes, bags, and belts.

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