Lack of clear and supportive policy decisions is one
of the challenges affecting the leather industry in Kenya, Reddamac Leather
Center Managing Director Robert Njoka has said.
Njoka, who is also the Chairman of the Kenya Tanners Association, said although the Kenya Leather Development Council ( KLDC) in collaboration with the Ministry of Livestock developed a policy, they are yet to see its implementation.
"Some beneficial policies have been reversed before the
industry could fully benefit including the reduction of import duty of footwear
as per the government directive ref ZZ/ TS/ GP / 30 of August 9 2021, issued by
the National Treasury to the KRA Commissioner General", Njoka said on
Wednesday.
He said the imposition of duty on imported leather finishing
chemicals, caused delays at ports, increased storage costs and operational
disruptions have made local leather more expensive and uncompetitive.
"Without urgent action, the industry risks losing the
progress made over the past decade," Njoka said.
He said the government must intervene at the highest level
to prevent further decline and ensure Kenya’s leather sector remains
competitive and sustainable.
The MD said eight tanneries have been closed in the past
three years.
He said the closure of these tanneries and the reduced
operational capacity of the existing ones have resulted in the loss of over
2000 direct jobs and 5000 indirect jobs.
Njoka said illegal drying and smuggling of hides and skins are also key challenges affecting the leather industry.
"The industry has struggled with a shortage of high-quality raw rides and skins, worsened by illegal exports and West Africa for
food processing," Njoka said.
He said the smuggling of hides disguised as other goods
continues unchecked.
The MD said illegal exports and smuggling of raw materials
is another challenge facing the leather industry.
He said exporters evade duty by not declaring the right
weight or classifying hides under different products and despite industry complaints,
authorities have not effectively addressed the issue.
He said poor animal husbandry and slaughter practices have
long affected hides quality adding that the destruction of hides for food exports
has worsened the situation.
"This decline has led to Kenya's international
reputation for low quality leather, reducing export prices compared to neighboring
countries like Rwanda and Uganda.
He said other challenges the leather industry is facing are
reduction in export duty on raw hides and skins from 80 to 50 percent.
"The proposal to reduce export duty threatens local
manufacturing by making raw hide exports more attractive , contradicting the
governments value addition policy.This change may cause friction with other EAC
member states , which maintain an 80 percent duty." Njoka said.
The MD said the need for the government to ensure policy
consistency to attract long term investimnet and put in place an appropriate
facilitative , regulatory and coordination framework to support investiment.
" There is need for implementation of the leather
policy which was launched on December 5, 2024 and grant duty remission for
inputs such as tanning chemicals and accessories," Njoka said.
Principal Secretary Agriculture and Livestock
Jonathan Mueke promised that the government is putting in place all the
mechanisms to revive the leather industry .
" The government is working on reducing imports
and increasing exports and also working to ensure that in the few years
we should not be importing shoes," Mueke said.
Njoka said his factory has been forced to lay of staff from
400 to 180 due the the harsh economic time that that country is facing.
