LEATHER, HIDES AND SKINS SECTOR IN KENYA
The leather industry in Kenya is mainly dependent on the large livestock resource base of Cattle, Goats, Sheep and Camel. The industry also derives its raw materials from emerging livestock such as fish (Nile perch), farm Ostriches and farm Crocodiles.
The sector’s contribution to Kenya’s economy currently stands at Kshs.10.6 billion and creates employment to over 22,540 people directly and indirectly.
Hides and skins subsector
The hides and skins trade has gone through phases; witnessing positive impact on the sector. The sector transformed from a purely raw material source to relatively modern industry adopting the changing technology and market trends. The transformation saw the country act as a tanning hub for the region through procurement of hides and skins and supply of leather in both local and regional markets. In addition, it experienced exports of semi- processed leather (wet-blue) to the international markets.
Currently, tanneries in Kenya have installed capacities standing at 60% for wet-blue, crust leather at 25% and finished leather taking 15%.
Leather goods and footwear subsectors
The leather goods and footwear subsectors in Kenya have exhibited a lot of potential for growth with an increase of leather goods units to 85. There are 25 enterprises engaged in formal footwear and leather goods manufacturing. This has a utilization capacity of more than 70%. Apart from the formal sector, there are hundreds of informal footwear manufacturing units/ Small and medium enterprises (SMEs) which undertook manufacturing of 55-60 percent of the local footwear production.
Cabinet Secretary for the Ministry of Industry and Trade, Mr. Adan Mohamed (2nd right) sampling some of the Kenyan leather products
INVESTMENT IN THE LEATHER SECTOR
To be able to trade externally, one requires a minimum of Kshs 5 million. The Department of Veterinary Services provides technical advice to exporters to help them succeed in export of hides, skins and leather.
- Raw hides and Skins
The Kenya Revenue Authority (KRA) on behalf of the Government levies 80% tax of the Free on Board (FOB) value. On the other hand, the Department of Veterinary Services levies 2% of the FOB to fund the Veterinary Services Development Fund (VSDF).
- Wet blue leather
The Veterinary Department levies 1% of the FOB value; KRA does not charge any levy thus encouraging value addition.
- Crust leather
0.5% of FOB value is charged by the Veterinary Department which goes to VSDF. KRA does not charge any levy.
- Finished leather
No levies are charged by both KRA and the Department of Veterinary Services.
Note: Taxes and levies by KRA and the Department of Veterinary Services are paid prior to export of goods.
FOREIGN INVESTMENT CONDITIONS
Special Economic Zones (SEZs)
The Government plans to roll out Special Economic Zones (SEZs) to boost Kenya’s investment profile. This will replace the current Export Processing Zones (EPZ) and is marked to improve foreign Direct Investments into the country.
The focus of the new policy on SEZs is that goods be produced closer to raw material sources and investors handed preferential terms on matters such as licensing.
President Uhuru Kenyatta in September signed the Special Economic Zones Act 2015, which spells out key measures to revamp activities in the blocs.
The special economic zones law provides incentives for industries to operate in designated zones.
The Act provides for numerous tax incentives for investors, including exemption from all existing taxes and duties payable under the Customs and Excise Act, Income Tax Act, East African Community Customs Management Act and Value Added Tax Act on all special economic zone transactions.
Enterprises at the SEZs will enjoy several tax incentives under a tightly monitored set-up to avoid losses of government revenue. The preferential tax terms will include value added tax (VAT) exemption on all supplies of goods and services to enterprises, reduction in corporate tax to 10 per cent from 30 per cent for a period of 10 years of operation and 15 per cent for the next 10 years.
The government plans to freeze new investments within its Export Processing Zones (EPZ) as it takes up the SEZs model.
The SEZs are currently undergoing a pilot program in Mombasa, Lamu and Kisumu.
All producers in the leather sector are required to comply with the standards set by the Kenya Bureau of Standards (KEBS) and other relevant International Standards bodies in production of quality leather and leather goods.
Manufacturers and business people in the leather sector must comply with the National Environment Management Authority (NEMA) legislation.
For more Information Contact:
Kenya Leather Development Council
Tel: +254 (020) 4442321
P.O Box 14480-00800
Riverside Drive- Nairobi.
LEATHER GOODS ENTERPRISES IN KENYA
|No.||Company||Product Range||Contact Details|
|1.||Adelphi – The Leather Shop||Diverse range of quality leather items including:
Bags, Hand bags, folders, wallets,briefcases, accessories as well as Corporate Gift Items.
|Tel:- +254 (20) 236 9694
Outlets: – Yaya and Sarit Centre, Nairobi.
|2.||Sanabora Design House Limited||Quality and contemporary leather items with an African touch including:-
Clutch Bags, Cross body bags, hand bags, wallets, purses, travel bags, gifts/corporate items.
|Murang’a Road, Opposite K.I.E, Aqua Plaza, 3rd Floor, Nairobi.
Tel: +254 20 232 1853,
Mobile: +254 715 774 579
|3.||Habib Leather Industry||Producers of High Quality Leather Products including:-
Corporate Gift Items, Sports Items and Items for the Catering and Hotel Industry
|Cell Phone: 0725 103 705
Cell Phone: 0725 760 681
|4.||Gonzala Leathers||Producers of a wide array of quality leather products.||Email: firstname.lastname@example.org
|5.||Rift Valley Leather||Range of production include:-
Travel bags and holdalls (briefcases), Satchels, wallets and purses, belts as well as handbags and bespoke items in exotic leather.
|Tembo Road, Karen – Nairobi.
Contact:- +254 (0) 721 922
|6.||Zeeban Designs||Producers of Quality Leather Accessories including:-
Hand bags, wallets and purses.
|Outlet: Yaya Centre, Nairobi.
Cell Phone: +254 734 446 316/
+254 723 425 098
|7.||Annabelle Thom||Assorted leather goods||The Junction shopping Mall, Dagoretti Corner, Nairobi
Tel: +254 (020) 3864 665
|8.||African Lily||Leather accessories||Ngong Road
P.O Box 26015 – 00100, Nairobi
Cell: +254 710 492147/
+254 725 106542
|9.||Adel de jak||Assorted leather goods||Cloud 9 Collection
Mushroom Road off Kiambu Road, Nairobi
Cell: +254 (0)734 399 800
|Escon Leather Company||Producer of high quality vegetable tanned leather accessories and interior decor including:-
Wallets, pouches, purses, clutch bags, handbags, ladies sandals, doormats and poofs.
|10.||Anchor Footwear||Producers of men’s office shoes in a diverse range of tastes and preferences.||Contact: email@example.com
Outlet:– Kenya Industrial Estates.
|11.||Kraw Leathers||Producer of leather bags, sandals, purses, footwear among other leather accessories||Industrial Area
P.O Box 7637-00300, Nairobi
Cell: +254 722 938 387
TANNERIES OPERATING IN KENYA
|No||Name of the Tanner||Postal Address||Emails|
|1.||Bata Shoe Limited
|P O Box 23 – 00217 LIMURU||bata.marketing@ bata.com
(Off Namanga Road, ATHI RIVER)
|P O Box 167 – ATHI RIVERfirstname.lastname@example.org|
|3.||Leather Industries of Kenya
(Off Garissa Road, THIKA)
|P O Box 79 – THIKAemail@example.com|
|5.||New Market Leather Factory
(Nanyuki Road – NAIROBI)
|P O Box 14579 – NAIROBIfirstname.lastname@example.org|
|6.||Aziz Tanneries Ltd
(Off Kangundo Road, Njiru Market)
|P O Box 1363 – NAIROBIemail@example.com|
|7.||Sagana Tanneries Ltd
|P O Box 94 – SAGANA||Yassin.firstname.lastname@example.org|
|8.||Nakuru Tanneries Ltd
(Shabab Estate – NAKURU Town)
|P O Box 225 – NAKURUemail@example.com|
(Dandora Market, NAIROBI)
|P O Box 78010 – 00507 firstname.lastname@example.org|
|10.||Nairobi Tanneries Ltd
(Nanyuki Road, NAIROBI)
|P O Box 689 – SARIT CENTRE||Chitti9aug@yahoo.com|
|11.||East Africa Tanneries Ltd
(Off Kangundo Road, Njiru Market)
|P O Box 46227 – NAIROBIemail@example.com|
|12.||Faaso Import and Export
(Lunga Lunga Road – NAIROBI)
|P O Box 78010 – 00507
|13.||Athi- River Tanneries
(Off Mombasa Road – ATHI-RIVER)
|P O Box 503 – 00204 ATHI-RIVERfirstname.lastname@example.org|
|14||Abdulwadood tanners LTD||Po Box 41695 Nairobiemail@example.com|
|15||MAS Trading Company||Po Box 71460-00622 Nairobi||Mohamedfirstname.lastname@example.org|