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  • African PlatformKenya

     

    Country information

    Kenya is the regional hub for trade and finance in East Africa.
    Country Size: 569,250 square kilometres
    Population: 33.18 (million)
    Currency: Kenya Shilling
    Languages: English, Kiswahili
    Capital City: Nairobi
    GDP (US$): 15.6 (US$ billions)
    Main Economic Sectors: Kenya's economy is the largest in East Africa with a Gross National Income (GNI) of $12.2 billion in 2002-more than a third larger than Tanzania's, and twice the size of Uganda's.Agriculture dominates the Kenyan economy, accounting (with forestry and fishing) for about 24 per cent of GDP. Agricultural products also make up the nation's principal exports. Agriculture's share of output has been declining, however, for four decades. The formal manufacturing sector only accounts for 13 per cent of GDP. By contrast the small-scale informal manufacturing sector is expanding rapidly and is estimated to make a fifth of GDP. The informal sector currently employs about 40 per cent of the labor force. The sector includes all semi-organized, small-scale, and unregulated activities.Tourism is also a pillar of the Kenyan economy, accounting for 20 per cent of GDP and a significant portion of the country's foreign exchange earnings.
    Main Exports: Tea, horticultural products, coffee, petroleum products, fish, cement.
    Main Imports: Machinery and transportation equipment, petroleum products, motor vehicles, iron and steel, resins and plastics.
    Industry (Main Industries): Small-scale consumer goods (plastic, furniture, batteries, textiles, soap, cigarettes, flour), agricultural products; oil refining, aluminium, steel, lead, cement; commercial ship repair, tourism.
    Natural Resources: Limestone, soda ash, salt, gemstones, fluorspar, zinc, diatomite, gypsum, wildlife, hydropower.

    Agriculture

    (Main Products):

    		 Tea, coffee, corn, wheat, sugarcane, fruit, vegetables; dairy products, beef, poultry, eggs.
    International Organization Member: All International Organizations.
    Infrastructure: Sea ports: Kilindini Harbour: Mombasa
    Airports: 221, Paved 15, International Airports - Jomo Kenyatta International Airport, Moi International Airport, Eldoret International AirportRoads: total: 63,942 km: paved: 7,737 km, unpaved: 56,205 km (2000)Railways: total: 2,778 km: narrow gauge: 1.000-m gauge (2004)
    Communications: Fixed line telephones: 400,000 (2003)        Mobile cellular: 5,000,000
    Other: Real GDP growth is forecast to accelerate to 5% in 2005. Agriculture is expected to expand further following normal rains, and the recent good performance in tourism is projected to be sustained through 2005 boosted by marketing campaigns and conferences in the country during the year. Investment in infrastructure, particularly roads and telecommunications, is also expected to support further economic expansion in 2005. Similarly, being the hub of the Eastern and Central African region, Kenya should benefit from the East African Customs Union and emerging opportunities in the reconstruction efforts in Southern Sudan.

    Livestock

    Cattle Population: 14,727 millions
    Sheep Population: 10,829 millions
    Goat Population: 12,442 millions
    Camel Population: 1,011 million
    Other Population: 0.415 Pigs, 0.01 Ostrich
    Cattle Off Take Rates: 0.7 million pieces (recorded) / 1.8 million pieces (estimated) / Off take rate: 10.2%
    Sheep Off Take Rates: 1.2 million pieces (recorded) / 2.0 million pieces (estimated) / Off take rate: 28.1%
    Goat Off Take Rates: 1.5 million pieces (recorded) / 3.0 million pieces (estimated) / Off take rate: 33%
    Livestock Policy:
    • Livestock production is fully privatized and the Government's role is the provision of extension services, especially in appropriate technology and improved management.
    • The overall livestock policy is to sustain a proper balance in investments in the sub-sector and provision of services between the public sector, the private sector and the beneficiaries.
    • Strengthen livestock extension servicesn Promote and encouragement of processing of long shelf life livestock products e.g., dairy products, camel milk, meat and honey/beeswax.
    • Complete the process livestock reforms including finalisation of the various livestock policies and legal framework.
    • Provide incentives to investors and entrepreneurs in livestock industry and skills for managing cottage inclusive.
    • To source for funds to undertake comprehensive livestock census
    • Development of infrastructure e.g. roads, power; etc.
    • Develop a clear policy on livestock production, processing and marketing emphasising health and safety standards.
    • Encourage the establishment of value adding processes.
    • Enhanced private sector participation
    • Participatory development i.e. enhance stakeholder participation in the sector development
    • Access to local, regional and global markets through improved access in domestic market and expanded access to regional and global markets.
    • Improved productivity and competitiveness of the livestock through sustainable increase in livestock resource base and improve efficiency in livestock production systems.
    Slaughter Facilities: 2,000 slaughter facilities
    70% - slaughter slabs
    30% - slaughterhouses of various standards - mainly operated by town councils
    Export Slaughterhouses  - 7

    Industry profile

    Hides and skins

    Tanning

    Footwear

    Leather goods

    SWOT analysis

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     Hides and skins

    Quantity Hides: 1.5 million pieces
    Quantity Sheep: 3.1 million pieces
    Quantity Goat: 4.2 million pieces
    Annual Collection Level Hides: 1.8 million pieces
    Annual Collection Level Sheep: 2.0 million pieces
    Annual Collection Level Goat: 3.0 million pieces
    Flaying Methods: Hand and Knife flaying
    Preservation Methods: Wet salted: Cattle 70% / Sheep 70 % / Goat 70%

    Air-dried: Cattle 25% / Sheep 23% / Goat 23%

    Ground dried: Cattle 5% / Sheep 5% / Goat 5%

    Other: Cattle -% / Sheep 2% / Goat 2%
    Grading Systems, available grades and percentage of Each: Grade 1: Cattle 34% / Sheep 23% / Goat 19%

    Grade 2: Cattle 25% / Sheep 30% / Goat 40%

    Grade 3: Cattle 11% / Sheep 24% / Goat 31%

    Grade 4: Cattle 30% / Sheep 23% / Goat 10%
    Market (%): International - 80%
    Local - 20%
    Major Markets: India, Pakistan, China
    Annual Export Value (US$): 45,000,000 (2003)
    Average market Bovine price: Local market US$ 1/kg
    Average market Sheep price: Local market US$ 1/kg
    Average market Goat price: Local market US$ 1/kg
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     Tanning

    Number of Tanneries: 18
    Installed tanning capacity: Hides: 3,300,000
    Skins: 6,300,000
    Tanneries in Operation: 9
    Utilized capacity: Hides: 1,300,000
    Skins: 1,675,000
    Output of the industry: Wet blue
    Hides: 1,076,400 pc
    Skins: 6,246,000 pc

    Crust      
    Hides: 246,000 pc
    Skins: 432,000 pc

    Finished
    Hides: 450,000 pc
    Skins: 240,000 pc
    Number of employees: 1,700
    Market (%): International (90%) and local (10%)
    Major Markets: Pakistan, China

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     Footwear

    Number of Footwear Factories: 30
    In Operation: 15
    Manufacturing capacity: Installed: 662,400 pairs
    Utilized:  264,960 pairs
    Number of employees: 103
    Market (%): Local - 100%
    Major Markets - Local population

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     Leather goods

    Number of Leather Goods and Garment Factories: 30
    In Operation: 15
    Manufacturing capacity: Installed: 500,000 (small leather goods)
    Utilized: 300,000 (small leather goods)
    Number of employees: 76
    Market (%): Local  100%
    Major Markets - Tourist

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     SWOT analysis

    Strengths: Kenya is a natural hub for regional services and regional headquarters due to its high quality manpower and its amenities. Many foreign investors based in Kenya sell services to the region. This position has not been actively promoted, however, and comparative advantages remain under-exploited.
    Export-led agribusiness has developed international competitiveness, in significant part due to FDI. The industry has flourished notwithstanding the infrastructure and policy difficulties that have undermined the traditional industrial base.
    With a deep-sea port and a well-developed airport Kenya has significant potential as a regional logistics hub. It is the main entry point for the Great Lakes Region, one of the few African regions with outstanding agricultural potential, and also serves
    Uganda and the Western regions of Tanzania (currently trade from Arusha, to Mwanza, both in Tanzania, passes through Kenya).
    Weaknesses: Kenya's industrial sector operates under old-fashioned management and production processes that have been made obsolete by more recent structures based on the concepts of Lean Production/World Class Manufacturing. These flexible forms of production organization provide significant and low-cost returns through, among other things, production-pulling, total quality control or cellular layouts. These forms of organization have been applied not just in high-income countries, but also in a variety of low-income economies (Kaplinsky, 1994). Visits to Kenyan manufacturing plants show that much of this organizational revolution has passed Kenyan industry by. Ironically, the very outdated nature of Kenya's factory system could provide potential for investors, notably foreign investors, for output expansion and cost reduction at attractive incremental capital cost.
    Opportunities: Agriculture is the mainstay of the economy, providing livelihood to approximately 75 per cent of the population.  There is considerable scope for diversification and expansion of the agricultural sector through accelerated food crop production and increase of non-traditional exports.  There are also opportunities for improvement in technology infrastructure such as packaging, storage, and transportation. Intensified irrigation and additional value added processing are marketable areas for investments.

    Tourism is Kenya's third largest foreign exchange earner. The tourism industry is growing as a result of the liberalisation measures, diversification of tourist generating markets and continued Government commitment to providing an enabling environment, coupled with successful tourism promotion and political stability. Enormous opportunities exist for investment in film production; recreation and entertainment facilities in the following areas:  Conference Tourism,  Cultural tourism,  Cruise ship Tourism,  Aviation/tour and travel Tourism,  Eco-tourism

    Manufacturing sector is an area where investment opportunities exist. Initially developed under the import substitution policy, there has now been a shift to export oriented manufacturing as the thrust of Kenya's industrial policy. The sector plays an important role in adding value to agricultural output and providing forward and backward linkages, hence accelerating overall growth.  The manufacturing sector now comprises of more than 700 established enterprises and employs directly over, 218,000 persons as at the year 2000. A wide range of opportunities for direct and joint-venture investments exist in the manufacturing sector, including agro-processing, manufacture of garments, assembly of automotive components and electronics, plastics, paper, chemicals, pharmaceuticals, metal and engineering products for both domestic and export markets.
    Threats: Productivity is not only low relative to strategic competitors like China and India, but it is also falling behind. Kenya's formal manufacturing firms have not seen gains in productivity in more than a decade. Meanwhile China and India have been making huge gains in firm productivity.

    With the exception of the textiles sector, firms' propensity to export actually fell between 1999 and 2002. AGOA helps, as it has already in textiles, but in other sectors Kenya has to compete against China and India.

    Government policy

    Fiscal Policies: Export levies:

    Export Development Levy
    Raw Hides and Skins - 10 KSh/kg or 15% of value whichever is more
    Veterinary Services Development Fund
    Raw Hides and Skins - 2.0%
    Wet Blue - 1.0%
    Crust - 0.5%
    Finished Leather - 0.5%

    Import levies:

    Raw Hides and Skins - 0.5%
    Wet Blue - 1.5%
    Crust - 1.5%
    Finished Leather - 1.5%
    Leather goods - 35%
    Leather footwear - 4%
    Second hand shoes "Mitumba" - 40 US Cents per kilo

    Corporation Tax:

    1. Local companies, including subsidiaries of foreign firms - 30%.
    2. Non-resident companies - 37.5%.(includes branch offices of foreign firms)
    3. Branch offices - pay no withholding tax on remitted profits.
    4. Royalties deriving from licence agreements: : Non-residents - 20% of gross:residents - 5% of gross
    5. Companies must pay a final 5% withholding tax on dividends.
    6. Corporations that pay dividends out of untaxed profits are liable for a compensation tax at the applicable corporate rate, since capital gains taxes are not levied at present.
    Monetary Regulations: Exchange control regulations:
    The government ended exchange controls with the repeal of the Exchange Controls Act in 1995. As a consequence of the Central Bank (Amendment) Act enacted later that year, the Central Bank of Kenya (CBK) has authority over international payments, foreign-exchange traders and banks. Where the CBK and the finance minister deem that international payments might interfere with compliance with international treaties, limits may be put on such payments (Section 33(I)).

    The Foreign Investment Protection Act (FIPA) removed restrictions on the repatriation of capital and remittance of dividends and interest payments. Foreign investors wishing to do this, however, must first obtain a Certificate of Approved Enterprise from the Ministry of Finance.

    The central bank must be notified of foreign-exchange transactions with values exceeding US$500,000 and other transactions exceeding US$100,000. Kenya is a member of the East and Southern African Anti-Money-Laundering Group, which requires Kenya to comply more closely with legislation in the Vienna and Palermo conventions on money-laundering.
    Trade regulations: Export Regulations

    Kenyan export regulations are generally liberal and contain few export restrictions. The country allows export of all items except for the following which are considered either of aesthetic value to the country or have national security importance: military equipment and munitions; antiques and works of art; bullion and coins; archives; live animals other than livestock and pets; wood charcoal and lumber; ivory, rhino horn and other products related to endangered species; human bones; and specially built transport equipment and automotive vehicles (e.g. armored cars and tanks). Export of these items must receive prior authorization by the relevant Kenyan Government ministry before an export license is issued.

    Firms exporting from Kenya need to obtain Form C 29 from Customs Department; and the following documents, which serve as certificates of origin, from Kenya's Ministry of Commerce and Industry: G.S.P. Form A for U.S. destined goods, EURO 1 for exports to the European Union, PTA Certificate of Origin for exports to the PTA (COMESA) area, and Ordinary Certificate of Origin for exports to all other parts of the world.

    Import Regulations

    All Kenyan imports are required to have the following documents:   import declaration forms (IDF) and a clean report of findings from the pre-shipment inspection firm, and valid pro forma invoices from the exporting firm.
    Kenyan customs regulations have no special provisions for importation of goods. All goods must be duty rated; however, Kenyan customs legislation allows the Minister of Finance to waive part or all rated duty. Legislation disallows waivers on commercial imports.
    Kenya allows duty-free entry into the country of goods destined for neighbouring countries or for transhipment; however, bonds must be executed. Such goods must be held in bonded warehouses designated by Kenyan Customs Department. Release of the bonded goods into the Kenyan market is prohibited, unless statutory customs payments are made. Samples and exhibits/displays for trade fairs may be imported into the country duty free. It is a Customs Department requirement, however, that the items are re-exported or are certified destroyed by a customs certification officer after use. An importing firm that fails to meet these requirements will be surcharged import duty and value added tax on the presumed value of the items.
    It is illegal to import the following items unless exemption has been granted by the relevant Kenyan Ministry: plants, soil, endangered species, arms and munitions, and non-pharmaceutical drugs. As the list of prohibited imports is continuously changing, importing firms should always check with the Kenyan Customs Department, Ministry of Finance, P.O. Box 30007, Nairobi, 00100 Kenya, Fax: 254-2-718-417, Tel: 254-2-715-540.

    http://www.kenya.go.ke

    Investment environment

    Requirements For Foreign Investment / Joint ventures: 1. Foreign Investment

    Branches of Foreign Companies:
    A company incorporated outside Kenya may carry on business in Kenya through a branch.
    In order to establish a branch the following documents and details must be submitted to the Registrar of Companies:
    •   a certified copy of the company's own Memorandum and Articles of Association or equivalent constitution documents
    •   a list containing the names, addresses, nationalities and occupation of its directors and company secretary
    •   a statement of existing mortgages and charges created by the company in Kenya, if any
    •   the names and addresses of one or more Kenyan residents who are authorised to accept legal notices on the company's behalf
    •   the address of the company's registered or principal office Financial statements of a branch must be delivered to the Registrar of Companies. Under the Companies Act, there is no requirement for those financial statements to be audited but, in practice, an audit is usually performed since the tax authorities are reluctant to accept un-audited branch accounts for tax purposes.

    2. Joint Ventures

    Joint ventures with Government-owned agencies and private companies are encouraged. These may be conducted as a partnership or sometimes as limited companies in which all the parties are shareholders.
    Tax Incentives: There are 41 export-processing zones in Kenya (2005); only two of these are under government ownership.

    Export-processing zones offer the following fiscal incentives:
    •   ten-year tax exemption followed by a flat 25% tax for ten years;
    •   exemption for the first ten years from all withholding taxes on dividends and other payments to non-residents during the first ten years;
    •   exemption from import duties on raw materials and intermediate inputs;
    •   no restrictions on management or technical arrangements;
    •   exemption from stamp duty and value-added tax; and
    •   100% investment deduction over 20 years on initial investment.

    - Concessions Corporate tax: Tax holiday for 10 years if operating in EPZ, MUB schemes (manufacturing under bond).
    - Duty Draw Back Scheme: Yes under TRE0 Scheme (Tax Remission for Export Office)
    - Voucher scheme: No
    - Bond Manufacturing Warehouse: No
    - Investment Allowance for new investments: Yes, 100% deductible from corporate tax.
    - Duty free imports of capital goods: Yes, as provided for in the tariff book.
    - Guarantee Against Nationalization: Yes
    - Investment Protection through MIGA (Multilateral Investment Guarantee Agency): Yes

    Sameer Industrial Park is Kenya's largest privately owned space-leasing export processing zone. Located in Nairobi's industrial area, it has been operational since 1990. The Government of Kenya has developed a 230-acre zone out of 721 acres allocated for export processing at Athi River, a Nairobi suburb; GOK is also developing another large export processing zone in Mombasa, Kenya's main seaport. The export processing zones are available to both developers (i.e. those intending to put up structures for lease) and operators.

    Incentives provided to manufacturers in the Export Processing Zones include: a ten-year corporate tax holiday and 25 percent tax rate thereafter; a ten year withholding tax holiday on dividend remittance; duty and VAT exemption on all inputs except motor vehicles; 100% investment deduction on capital expenditures within 20 years; stamp duty exemption on legal instruments; exemption from Industrial Registration act, Factories Act, Statistics Act, and Trade Licensing Act; exemption from pre-shipment inspection; on site customs inspection; and work permits for senior expatriate staff.  

    Export Processing Zone Authority (EPZA) is a GOK parastatal tasked to facilitate participation in manufacturing in the EPZ. Details on joining the EPZ can be obtained from: Chief Executive, Export Processing Zone Authority, British-American Center, P.O. Box 50563, Nairobi 00200, Kenya, Tel: 254-2-712-800; Fax: 254-2-713-704. Website: www.epzakenya.com. The Commercial Service in Nairobi will be glad to assist in obtaining specific EPZ details for interested U.S. firms.

    The Manufacturing Under Bond (MUB) scheme has been operational in Kenya since 1986. The MUB scheme is accorded most of the incentives of EPZ's without the requirement of location at predetermined sites. The only requirement for the manufacturer is to reimburse GOK all costs of the customs officer and guards at site. Enterprises operating under this program are offered the following incentives: Exemption from duty and VAT on imported plant, machinery, equipment, raw materials and other imported inputs; 100% investment allowance on plant, machinery, equipment and buildings. The Investment Promotion Center (IPC), another GOK parastatal tasked to encourage and promote investment in Kenya, processes all applications for MUB. IPC contacts are: Executive Chairman, Investment Promotion Center, National Bank Building - 8th Floor, P.O. Box 55704, Nairobi 00200, Kenya; Tel: 254-2-221-401; Fax: 254-2-336-663. Website: www.ipckenya.org.

    Nairobi and Mombasa, Kenya's main trading cities, have sufficiently large warehousing facilities. Most of the warehouses are for private warehousing; however, some specialized ones provide bonded warehousing services. Dutiable goods entering Kenya may be stored in the bonded warehouses without payment of duty and value added tax; but duty and tax become due and payable when the goods are released from the bonded warehouse for local commercial use. Prevailing tariff rates then apply.

    http://www.investmentkenya.com
    Free Trade Zones: Included in Tax Incentives information.

    Institutional support

    Institute Name
    Training and Production Centre for the Shoe Industry (TPCSI)
    Kenya Bureau of Standards
    KIRDI – Leather Development Center
    Kenya Industrial Training Institute
    Department of Veterinary Services Hides and Skins Importers & Leather Development Unit
    Animal Health and Industry Training Institute (AHITI)

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     Training and Production Centre for the Shoe Industry (TPCSI)

    Contact Name: George Kamau
    Job Title: Manager
    Address : TPCSI Building, Thika
    P.O.Box: 3586 Zip: 01002
    City: Thika
    Country: Kenya
    Phone: 254-67-30642    
    Fax: 254-20-4445344    
    Email: admin@tpcsi.com
    Activity:
     Training  
    Presentation of the institute: Training and Production Centre for the Shoe Industry (TPCSI) was set up by United Nations Industrial Development Organisation (UNIDO) in collaboration with the local leather associations, namely Kenya Tanners Association and the Kenya Footwear Manufacturers Association in 1993. TPCSI is a specialized technology resource Centre catering for the needs of the footwear and Leather product Industries in the Eastern and Southern Africa Region.

    It is governed by a voluntary Board of Trustees, headed by a Chairman. The Training and Production Centre for the Shoe Industry has been assisting the formal and informal footwear and leather goods sector since it inception.

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     Kenya Bureau of Standards

    Contact Name: Dr. Khadijah Kasachoon
    Job Title: Head of Textile and Leather
    Address : Kapiti Road, off Mombasa Road
    P.O.Box: 54974 Zip: 00200
    City: Nairobi
    Country: Kenya
    Phone1: 254-20-605506 Phone2: 254-20-605490
    Fax1: 254-20-609660 Fax2: 254-20-604031
    Email: info@kebs.org
    Website: http://www.kebs.org
    Activity:
     Other Government body  
    Presentation of the institute: The aims and objectives of KEBS include:
    •   Preparation of standards relating to products, measurements, materials and processes
    •   Their promotion at national, regional and international levels
    •   Certification of industrial products
    •   Assistance in production of quality goods
    •   Quality inspection of imports at ports of entry
    •   Improvement of measurement accuracies
    •   Dissemination of information relating to standardsLeather and leather products sector
    •   KEBS has specific technical committees responsible for developing standards for the leather sector. These are:

    o Hides and skins
    o Leather
    o Leather products (other than footwear)
    o Footwear
    o Leather associated products

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     KIRDI – Leather Development Center

    Contact Name: John M. Muriuki
    Job Title: Center Manager
    Address: Kapiti Road, Off Mombasa Road
    P.O.Box: 30650 Zip: 00100
    City: Nairobi
    Country: Kenya
    Phone1: 254-20-609440 Phone2: 254-20-544710
    Fax: 254-20-607023    
    Email: info@kirdi.go.ke
    Activity:
     Training  
    Presentation of the institute: The Leather Development Centre (LDC) is a specialized Semi Commercial unit within Kenya Industrial Research and Development Institute offering

    Products Development
    •   Exotic leather production
    •   Leather fat liquoring products development from local oil seeds
    •   Technology development adoption transfer

    Capacity Building:
    •   Training technical personnel
    •   Organizing group training courses / workshops
    •   Offering industrial attachments

    Business support services
    •   Productivity and Quality improvement
    •   Consultancy and extension
    •   Quality testing and conformity
    •   Feasibility studies, Data collection and industrial information

    The centre offers MSEs variety of contract services in tanning, re-tanning, finishing, machine operations and product development trials.

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     Kenya Industrial Training Institute

    Contact Name: Mr. Ngugi
    Job Title: Head of Tannery
    Institute Name: Kenya Industrial Training Institute
    Address : Soloi, Nakuru Road
    P.O.Box: 280    
    City: Nakuru
    Country: Kenya
    Phone1: 254-51-2210886 Phone2: 254-51-2210836
    Activity:
     Training  
    Presentation of the institute: Kenya Industrial Training Institute (KITI) was established in 1970. It offers training courses in the leather field:

    a) Two year tannery artisan course. Entry requirement: KCPE or equivalent
    b) Three month skill upgrading courses in tanning, shoe making and leather goods manufacture

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     Department of Veterinary Services Hides and Skins Importers & Leather Development Unit

    Contact Name: Kipsang Keter
    Job Title: Principle Hides and Skins Officer
    Address 1: Veterinary Research Laboratories
    Address 2: Private Bag Kangemi
    Zip: 00625    
    City: Nairobi
    Country: Kenya
    Phone1: 254-20-631390 Phone2: 254-20-631395
    Fax: 254-20-631273    
    Activity:
     Ministries  

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     Animal Health and Industry Training Institute (AHITI)

    Contact Name: Kaberethi Wanjohi
    Job Title: Tannery Officer
    Institute Name: Animal Health and Industry Training Institute (AHITI)
    Address : Kabete
    P.O.Box: 29040 Zip: 00625
    City: Kangemi
    Country: Kenya
    Phone1: 254-20-631243 Phone2: 254-20-631306
    Activity:
     Training  
    Presentation of the institute: This is a Government run institution established by FAO in 1965. It offers two year certificate courses in Leather manufacture, and leather craft. Entry requirement is KCSE grade D+ or its equivalent

    Trade statistics

    Products

    Year

    Exports (quantity)

    Exports (in USD)

    Footwear

    2002

    37,614,00 pairs

    20,650,000

    Leather

    2002

    4,334 tons

    8,000,000

    Technical cooperation projects

    Adding Value to African Leather

    Duration: 3 years
    Status: Completed
    Description: The Project seeks to improve the capacity and quality of leather and leather products produced in selected countries. The project seeks to achieve this through upgrading the capacity of technical skills, establishing quality control systems, and market development. For this purpose training institutions shall be strengthened and support will be given to selected units.

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    CDE Leather Program for Eastern and Southern Africa

    Duration: 3 years
    Status: Ongoing
    Description: The priority of CDE Strategy in EAF & SAF for the leather sector is on SME development, focusing on the three subs-sectors which constitute the leather sector, that is: Raw Hides and Skins; Tanning, Footwear and Leather products. The Strategy will ensure that interventions are demand driven and there is ownership at the enterprise level. It is structured to address and respond to challenges/ constraints in the leather sector and promote interventions which are likely to yield high impact and sustainable outputs.

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    UNIDO Integrated Programme for Kenya

    Duration: 2 Years
    Status: Ongoing
    Description: To reinvigorate economic growth through increased competitiveness, trade facilitation and regional integration and improve the productivity of the agro-based industries through linkages with industry.The Integrated Programme is focused on four industrial sub-sectors and aims to strengthen the country's connections to global trade and investment flows. Specific objectives of the interventions are to increase productivity and develop productive capacities in areas with high export potential, to mobilize resources, create an enabling business environment at domestic level, facilitate trade and promote private sector investment and technology flows.

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    Raw Hides And Skins Grading And Pricing Systems In Eastern And Southern Africa

    Duration: 3 years
    Status: Completed
    Description: The project specifically addressed the non-harvested revenues in the hides, skins and leather sectors of 4 eastern and southern African countries. The incentive scheme at its core redressed a situation of substantial losses incurred due to inferior quality on the one hand and non-collection of hides and skins on the other hand.

    Surveys and reports

    Investment Climate Assessment, Enhancing The Competitiveness Of Kenya’s Manufacturing, Sector: The Role Of The Investment Climate, Kenya

    Corporate Author(s): Kenya Institute for Public Policy Research and Analysis (KIPPRA) in Nairobi, Kenya. Regional Program on Enterprise Development in the Africa Private Sector Group at the World Bank.
    Year of Publication: November 2004
    Number of pages: 104
    Language(s): English
    Abstract: 1. The objectives of the ICA are to assess the current performance of formal manufacturing firms, to identify the key constraints on their growth and competitiveness, and to prioritize and assess policy priorities to promote private sector development.
    2. While attention is often drawn to the large and growing informal sector, the formal manufacturing sector remains of crucial interest because it is one of the largest and most productive sectors in the economy. The formal manufacturing sector represents roughly 13 per cent of GDP in spite of employing less than 1.5 per cent of the workforce. Policies that promote improvement and expansion of the formal sector can therefore have a disproportionately large impact on national wealth. By size and rate of growth the informal manufacturing sector is larger-as a whole it employs roughly 40 per cent of the workforce, and more than three quarters of all manufacturing workers are employed there. These firms tend to be very small and unproductive, however, which is why the formal sector accounts for such a large share of GDP.
    3. The analysis of the formal manufacturing sector focus es on the analysis of data collected in a 2002/03 survey of 282 formal manufacturing firms and workers. The survey covered seven sub-sectors in five urban areas: Nairobi, Mombasa, Eldoret, Kisumu and Nakuru. Up to ten employees from each firm were also surveyed. Roughly half of the firms have less than 100 employees, two-thirds are located in Nairobi, a fifth have a more than 10 per cent foreign ownership, half export more than 5 per cent of sales, and three-quarters are owned by ethnic Asians.
    Publisher: Africa Private Sector Group
    Type of Document/Material: Internet Publication

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    A Blueprint for the African Leather Industry

    Corporate Author(s): UNIDO
    Year of Publication: 2004
    Number of pages: 105
    Language(s): English
    Also availabe at: http://www.unido.org/en/doc/21398
    Abstract: The gap between resources and production shows the considerable potential of the African leather industry. Reducing this gap is especially critical in an important strategic sector for the economic and industrial development of many African countries. A Blueprint for the African Leather Industry has been commissioned to identify ways in which this potential can be realized. Its purpose is to serve as a guide for designing policy instruments and activities that will assist the different players in the leather supply chain - the government, the private sector and international organizations - to tackle the problems that affect the African chain, applying cost effective solutions within the context of globalization and interregional trade. The Blue print consists of four parts. Part One places the African leather supply chain in the context of the global supply chain. Part Two examines the production of hides and skins in Africa, and looks at ways that this could be improved. Part Three examines the processing and manufacturing of leather and leather products, and presents recommendations for improvement. Part Four deals with market development and trade promotion.
    Publisher: UNIDO
    Type of Document/Material: Pdf file

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    Investment Policy Review - Kenya

    Corporate Author(s): UNCTAD
    Year of Publication: February 2005
    Number of pages: 121
    Language(s): English
    Abstract: The UNCTAD Investment Policy Reviews are intended to help countries improve their investment policies and to familiarize Governments and the international private sector with an individual country's investment environment. The reviews are considered at the UNCTAD Commission on Investment, Technology and Related Financial Issues. The Investment Policy Review of Kenya, initiated at the request of the Government, was carried out through a fact-finding mission in July 2004 and is based on information current at the date. The mission received the full cooperation of the relevant Ministries and agencies, in particular the Investment Promotion Centre. The mission also had the benefit of the views of the private sector, foreign and domestic, civil society and the resident international community, particularly bilateral donors and development agencies. A preliminary version of this report was discussed with stakeholders at a national workshop in Nairobi on March 18, 2005.
    Publisher: UNCTAD
    Type of Document/Material: Hard copy

    Company profiles

    Company Name Products
    Abdulwadood Tanners Ltd Air/Frame - Wet blue - Wet salted
    AFSO Exporters Ltd Air/Frame - Wet blue - Wet salted
    Ashieng Footwear Ltd Children's shoes - Men's shoes - Military - Sandals - Shoes components - Women's shoes
    Aziz Tanneries Ltd Wet blue - Wet salted
    Bahati Hides and Skins Co Ltd Air/Frame - Wet salted
    Brasbuckle Ltd Belts - Large leather goods - Small leather goods
    Crown Industries Ltd Boots - Men's shoes - Shoes components
    Dog Bones Ltd Footwear - upper leather - Industrial gloves - Industrial leather - Large leather goods - Leathergoods leather - Split leather - Wet blue
    East African Hides Limited Wet blue - Wet salted
    Khan Limited Large leather goods - Men's shoes - Other - Sandals - Women's shoes
    Leather Masters Ltd Large leather goods - Small leather goods
    Leather Tech. International Ltd Wet blue - Wet salted - Wet salted
    Leathertech Belts - Furniture - Large leather goods - Other - Small leather goods
    Merit Marketing Services Belts - Large leather goods - Other - Saddlery & harness - Small leather goods
    Nakuru Tanners Limited Wet blue
    Nalina Ltd / Adelphi The Leather Shop Large leather goods
    New Market Leather Factory Ltd Air/Frame - Wet salted
    Quality Hides Ltd Air/Frame - Wet salted
    Sagana Tanneries Ltd Air/Frame - Dry salted - Wet blue - Wet salted
    Santa Teresa Shoes Ltd Men's shoes
    The Palm Prints Furniture - Small leather goods
    United Footwear Ltd Boots - Military - Safety
    Yslam Mohamed & Sons Wet salted
    Zingo Investment Ltd Wet salted

    Environment and social responsibility

    Environment Legislation: National Environmental Management Authority: http://www.nema.go.ke
    The National Environment Council (NEC) is established by Section 4 of the Environmental Management and Coordination Act no. 8 of 1999.
    Part to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Wetlands, Whaling.
    Signed, but not ratified: none of the selected agreements.
    Labour Laws: Kenya joined the ILO in 1949. As of 4 June 2004, it had ratified 49 ILO Conventions, of which 43 were in force in the country

    Employment relations in Kenya are regulated by a number of sources: constitutional rights; statutory rights, as set out in statutes and regulations; rights set by collective agreements and extension orders of collective agreements; and individual labour contracts.
    These legal sources are interpreted by the Industrial Court, and in some cases by the ordinary courts. A particularly important role to play has the tripartite Industrial Relations Charter that laid the foundation for an industrial relations system already prior to Kenya's independence in 1963. International standards, especially ILO Conventions ratified by Kenya are used by the government and courts as guidelines, even though they are not binding.

    Acts of Parliament in the realm of civil and criminal law, which have provisions that may have impact on individual and collective labour relations include the Contract Act, Local Government Act, Public Service Commission Act, the Children Act, laws concerning the Armed Forces, and legislation dealing with the establishment of parastatals.
    In individual labour cases British common law is applicable up to now.
    The Judiciary Act (Cap. 16) of 1967, section 3(1) states: "The jurisdiction of the High Court and of all subordinate courts shall be exercised in conformity with:
    a) the Constitution;
    b) subject thereto, all other written laws; including the Acts of the Parliament of the United Kingdom (…);
    c) subject thereto and so far as the same do not extend or apply, the substance of the common law, the doctrines of equity and the statutes of general application in force in England on the12th August 1897, and the procedure and practice observed in courts of justice in England at that date: Provided that the said common law, doctrines of equity and statutes of general application shall apply so far only as the circumstances of Kenya and its inhabitants permit and subject to such qualifications as those circumstances may render necessary."
    http://www.labour.go.ke
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