Tuesday, 17 June 2014

Kenya To Boost Leather And Textile Production With $34m


leather factory
VENTURES AFRICA – Kenya is keen on reviving its leather and textiles sub-sector and has committing Sh3 billion ($34.1 million) toward growing capacity within the industry, Treasury Secretary, Henry Rotich has revealed.
Rotich, who proposed the sum, stated that there exists a huge demand of about 28 million leather units in Kenya, but regretted that local production is incapable of meeting this gap, which had hitherto been reliant on imported supplies.
Less than 4 million units of leather are currently supplied annually.
He however stated that the East African country has ideal production zones for quality leather, stressing that “with the global leather demand now estimated at more than Sh5.2 trillion ($60 Billion),” Kenya must work assiduously to ensure it shares in the boom.
Industrialisation Secretary, Adan Mohamed also said on Friday that his ministry is set to improve efficiency in manufacturing companies.
“To bring down the cost of production, we are looking to lower the cost of power, improving the quality of roads to ensure market accessibility and improving value addition of raw products,” Daily Nation quoted Mohammed as saying.
Mohamed has also identified low grassroots production capacity as a factor hindering the growth of the indigenous leather industry.
More than 3000 direct jobs are sourced from the Bata factories, which produces 30 million shoes annually.

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