Kenya Leather Industry: Diagnosis, Strategy and Action Plan 2015

Abstract

World trade in leather—one of the most widely traded commodities—is currently growing and is estimated at over US$100 billion a year.1 In 2013, leather footwear accounted for half of that figure, amounting to US$53.5 billion. Globally, demand for leather and leather products is growing faster than supply. Although the leather sector in Africa, including in Kenya, has many natural strengths, it risks missing out on opportunities in an expanding global market. Despite the growing global market for leather products such as footwear, fine leather, handbags, and auto upholstery, African countries, including Kenya, remain marginal players. The key questions concern whether and how Kenya can grow its leather industry, increase its competitiveness in leather and leather products, grow exports and jobs, and create a viable and sustainable industry to propel the country toward inclusive prosperity. Despite owning a fifth of the global livestock population, African countries account for only 4 percent of world leather production and 3.3 percent of value addition in leather. Most African nations, including Kenya, are essentially exporters of raw hides and skins and wet blue leather and maintain a low production capacity for finished leather. Just to Kenya’s North, Ethiopia is emerging as an exception to this trend.