Your Wallet and You: Celebrating the Resurrection of Kenya’s Leather Industry

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August 16, 2014

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Photo credit: Hans/Pixabay

Photo credit: Hans/Pixabay

In an effort to breathe new life into the Kenyan economy, the government has announced plans to revive the now sadly under performing leather industry in Kenya. Industrialization Cabinet Secretary Adan Mohamed made it known that a Leather Development task Force consisting of key players in the trade of leather goods in the country, including the Bata Shoe Company’s CEO, Leather Technologies and Fashions Limited director and many more qualified individuals who bring meaningful experience to the planning and execution of a new structure for the supply and dispersal of leather products to key internal and external markets.

The revival of Kenya’s leather industry is an excellent step towards strengthening the Kenyan economy directly by introducing a new source of revenue. As stated by Secretary Mohamed, the leather industry has the potential to generate up to KES.5.5 billion to our gross domestic product. Along with the additional proceeds from this industry, the return of the leather industry will go a long way towards setting our economy on more solid ground through the power of diversification. Like many African countries, Kenya relies on a few key sectors such as agriculture and tourism to generate the funds needed to run the country.

With this new facet being introduced, Kenya gains an opportunity to stop putting all her eggs from a few baskets that are subject to variables such as weather events or international insecurity, therefore gaining more financial security. As the economy flourishes, so do businesses operating within the country, up to and including those of us engaging in logistics. With the government having access to coffers replenished by the leather industry, interest rates for loans take a plummet, international investors are attracted by the economic stability and financial environment, and prices for essential commodities are lowered, creating the perfect conditions for operators in the logistics industry- and profit making institutions in general- to prosper.

Photo credit: Jean-Frederic/Wikimedia Commons

Photo credit: Jean-Frederic/Wikimedia Commons

Direct opportunities for business also abound in the processes needed to produce leather goods. Individual supply chain managers can benefit from demand for transportation of raw materials to be cured and converted to viable finished products. Providing reliable services to get the hides from producers or slaughter houses to tanneries can quickly become a lucrative venture for the enterprising logistics manager. Similarly, as the industry prepares to reboot itself, logistics firms may be contracted to assist in setting up and modernizing facilities such as slaughter houses and factories, in terms of importing and transporting the machinery to be used from port to the new locations as needed.

Beyond what comes before the production process is completed, supply chain managers can also generate revenue by getting involved in freighting and shipping of the final goods for consumption. Internally, finished leather products made right here in Kenya will be cheaper than the imports, making them prime for local consumption across the country. This, of course, will require the services of logistics companies or the logistics departments of companies involved. A major target of the task force put together to help inject new life into the leather industry is to tap into the international market with Kenyan exports. For supply chain management firms with the facilities to organize for exports, this presents a potential source of reliable income and development for the individual company in question.

As you can see, the return of the leather industry is good news across the board, not just for us in the logistics industry, but also for the arid areas that will receive development due to the establishment of tanneries and slaughterhouses, the Kenyans who will find employment in this new industry and of course, the Kenyan public who will benefit from more affordable leather products. Are you excited for this new development? Let us know in the comments and have yourself a wonderful week to come.


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