Plans to build Tanneries in Wajir & Garissa unveiled

BUSINESS NEWS

Sh25m set aside for three tanneries

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William Oeri | NATION Mr Simon Nganga of SIMJON Shoes Ltd displays a pure leather shoe made in Thika during the launch of the Leather Development Council Strategic Plan in Nairobi last April .

By KABURU MUGAMBI akaburu@ke.nationmedia.com

Posted  Friday, May 6 2011 at 18:32

IN SUMMARY

• Factories will boost production capacity of leather and increase value addition

The Government will spend Sh25 million to build three community-managed mini-processing tanneries in Wajir, Garissa and Bungoma, which are expected to be complete by August 2011.

The project, which is fully-funded under the Economic Stimulus Programme, will increase the number of tanneries in the country to 16.

Besides the increased processing capacity, the new tanneries are expected to increase value addition of the leather.

“We will end up with 16 tanneries, which should help us process all hides and skins and increase on value addition,” said Mr Mwinyikione Mwinyihija, the chief executive officer of Leather Development Council.

“With a demand of 34 million pairs of shoes annually, we can help this country industrialise.”

He added that the council, established by the government and private sector to drive the leather sector, had facilitated the formation of Kenya Footwear Manufacturers Association, which will play a key role in buying leather products.

Ms Nalina Rupani, managing director of leather shop Adelphi, said there has been no voice for the leather industry before the recent formation of Leather Development Council, while the absence of an institutional framework that would focus on tapping the huge potential in the leather industry had contributed to the low value addition.

The sector has gradually declined in performance throughout the production chain, starting with raw materials, leather processing, footwear and leather products and marketing.

Before the marketing liberalisation in 1990s, the country had 19 established tanneries with a capital investment worth Sh3.8 billion, employing 4,000 people.

Livestock Development permanent secretary, Kenneth Lusaka, said the government is addressing hindrances and competition, which have made Kenya unable to fully exploit hides and skins as a locally available resource.

This includes initiatives such as imposition of tax on exportation of raw hides and skins from 20 per cent to 40 per cent in 2006 and exemption of importation of tax on selected chemicals and machinery used in the tanning industry.