• Kenya exports 90 per cent of its leather products in raw form
• Official attributes this to limited incentive and small number of players
The hides and skins subsector in Kenya is underutilised with the bulk of the products being neglected to waste or are sold at throwaway prices.
Chris Simba from the Kenya Market Trust said this is despite the increased demand for hides and skins in the region and globally.
A report on analysis of the livestock subsector showed that the demand for meat, hides and skins will increase with the growing population, urbanisation and improvement in economic performance in the long-term.
Kenya Leather Development Council CEO Isaac Noor said Kenya exports 90 per cent of its leather in raw form (semi-processed wet blue) while only 10 per cent is exported as finished products.
The leather industry is worth Sh15 trillion ($150 billion) across the globe. But Africa commands only four per cent, with Kenya is commanding less than one per cent equivalent to Sh21 billion.
Simba attributed this to limited incentives to invest in tanneries and leather manufacturing plants, "yet this has the potential to turn around the economies of several counties and the entire nation".
He said despite the liberalisation of the livestock subsector and agriculture, the market structure remains uncompetitive with a few players participating in livestock markets as well as tanning segments of the value chain.
“There is a need for the government to shift from the traditional policy formulation to the adoption of new roles to respond effectively to rapidly evolving market conditions,” he said.
This, Simba added, can be done by promoting equitable livestock sector development through a regulatory framework and providing incentives for the private sector.
The report also noted that the livestock sub-sector lacks adequate personnel, impacting on the general livestock production.
“Counties are employing interns to help fill the gap of the personnel who have since retired. This is due to budget constraints. But we are now engaging anyone with the capacity and experience along the value chain to provide the extension services on a short term basis,” Trans Nzoia Agriculture CEC Mary Nzomo said.
The government has not employed any new researcher and technical personnel since the 90s following the liberalisation of the agriculture sector after the introduction of structural adjustment programmes by the World Bank and IMF.
Over the years, the sector has been experiencing a high turnover of the experts retiring with minimal replacement by various authorities.
“The agriculture personnel who are employed aged mid-twenties in the early 90s are now approaching retirement age. In view of this, the national and county government will be meeting a self-analysis of the sector with a view to drawing comprehensive budget to facilitate employment,” policy director at the Livestock department Christopher Wanga said.
Edited by R.Wamochie