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NEWS & CURRENT AFFAIRS

The Nairobian

State unveils plan for abattoirs, leather industries in counties

News

By WINSLEY MASESE | Jun 16, 2014

The Government plans to commence a programme to establish modern slaughterhouses and tanneries in the counties.

Industrialisation and Enterprise Development Cabinet Secretary Adan Mohamed said the ministry would soon start the programme with county governments.

He said the plan is to encourage players establish modern abattoirs and regional tanneries and improve efficiency in the industry.

“These are part of our efforts to revive and strengthen the local leather industry for our domestic consumption and export market,” he said. Mohamed regretted that lack of capacity has hindered the growth potential of the leather sector.

With an increasing demand for shoes, Kenya imports about 85 per cent of the units to meet the 32 million required annual units.

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Demand outstrips an average production of four million units and Ethiopia is a key supplier of shoes to the local market. Kenya is currently the second largest importer of footwear and leather products in Africa after Egypt.

The local leather industry has a capacity to make a significant economic contribution of up to Sh54 billion ($630m) of the Gross Domestic Product (GDP).

“Despite Kenya being an ideal production zone for quality leather, the local leather production capacity has been progressively hampered by low production capacity at the grassroots’ level,” he said during a tour of Bata, Limuru.

Ethiopia, Kenya’s main rival, offers diploma courses and has an advanced leather industry where there are more than 20 shoe companies the size of Bata, which makes footwear in Limuru.

The few leather shoes in Kenya are overpriced making major suppliers such as supermarkets buy the units from Ethiopia.

The Government has identified the leather industry as one of the key sectors the country has a competitive edge and is projected to revolutionalise Kenya’s manufacturing sector in a five-year plan.

Mohamed said other efforts being made to grow the leather industry include the introduction of a Bachelor of Science (Leather technology) by the University of Nairobi.