Gov’t Set To Ban Shoe Imports By 2027 As Ruto Sets Eyes On Local Manufacturing
Kenya is set to stop importing shoes by 2027, in a bold move by the government to revitalize the domestic leather industry and create thousands of jobs.
President William Ruto made the announcement on Saturday, June 1, at the 61st Madaraka Day celebrations in Bungoma County.
This decision to ban shoe imports follows an earlier announcement to halt maize imports by 2026.
The shoe import ban is expected to have a significant impact on both commodity prices and revenue margins in communities that rely on livestock.
President Ruto laid out the government’s strategic plans to eliminate the annual importation of 15 million pairs of shoes.
“Our commercialisation agenda prioritises leather, dairy, and red meat value chains, supported by projects like the Livestock Commercialisation Project, which aids 11,000 vulnerable youth and women-led households in 10 counties,” said Ruto.
The government intends to increase local shoe production from 8 million pairs per year to 36 million pairs, generating an annual turnover of Ksh72 billion.
This ambitious target aims to increase annual income for Kenyans who rely on livestock from Ksh15 billion to Ksh120 billion and create more than 100,000 jobs, up from the current 17,000.
To meet the demand for shoe imports, President Ruto’s government has announced a significant Ksh400 million investment to upgrade the Ewaso Ng’iro South Development Authority’s leather factory.
Out of this allocation, Ksh200 million will be used to acquire state-of-the-art equipment, Ksh100 million will be dedicated to building a new footwear factory, and the remaining Ksh100 million will be used for buying skins and hides.
“Machinery for increasing processing capacity at the factory has already been procured and installed. To supply quality hides and skins, 703 flayers have been trained, and subsidised flaying equipment provided to 680 slaughter points,” President Ruto stated.
The President emphasized the government’s commitment to strengthening the leather sub-sector, citing its potential to support competitive export industries as well as numerous thriving businesses and households.
“We are invested in developing our leather sub-sector to support competitive export industries supporting many thriving enterprises and households,” he asserted.
“In this connection, we have committed to implement strategies aimed at increasing incomes from Ksh15 billion to Ksh120 billion a year, multiplying job opportunities from 17,000 to 100,000 and raising annual footwear production from the current 8 million to 36 million pairs worth Ksh72 billion by 2027.”
Kenya’s leather industry has been transforming since an eight-year-old strategy was implemented.
This strategy included forming a council to promote local industry development and establishing a special economic zone for leather exports.
In 2018, data for the second quarter showed that imports stood at 5.2 million pairs of shoes worth Ksh1.1 billion, a 7.4 percent decrease from the first quarter when Kenyans spent Ksh1.3 billion on 5.8 million pairs.
Despite the decline, imports increased in the third quarter, with 6 million pairs of shoes brought in, reflecting a 17% increase.
However, raw leather exports have dropped significantly.
Exports have decreased by 43.7 percent in the last three quarters, with the lowest reported figure at 4,219 tonnes, earning tanneries Ksh779.3 million.
The increase in shoe imports in 2018, particularly in the third quarter, was driven by traders preparing for the December holidays and back-to-school season.
According to the Kenya National Bureau of Statistics’ 2018 Quarterly Balance of Payments report, traders spent Sh1.4 billion on foreign-made shoes during this period.
This increase in imports contradicts leather industry stakeholders’ efforts to support local cobblers, small and medium-sized businesses, and major shoe factories in order to meet local demand of 40 million pairs per year.
Kenya currently imports most of its shoes from China, India, and Turkey. The new import ban is expected to significantly alter this dynamic, promoting the growth of the domestic leather industry while decreasing reliance on foreign markets.
Gov’t Set To Ban Shoe Imports By 2027 As Ruto Sets Eyes On Local Manufacturing
