Analysis of the Trading Regime of the Leather Value Chain Strata in Kenya

Abstract

Trade in leather and leather products has progressively increased at the global arena. This growth has had much impact in the developing world mostly as the leather sector moved to Asia and projected to translate to Africa. Thus, the need to scrutinize the preparedness of the continent through the member-states is crucial. Therefore, the study attempted to analyse the trading regime of the leather value chain strata. A quantitative approach (n=244), descriptive analysis including an aggregate score to ascertain the top activities impacting on trade regime in Kenya was carried out. The results were varied depending on the individual stratums where the lower strata of the chain (producers, butchers and traders) were found to concentrate mostly in domestic trade. The upper value chains strata were differently impacted with tanners active on domestic (raw material sourcing) and export (for the semi-processed leather) trade. In retrospect, Leathergoods and Footwear were engaged with domestic trade but had challenges on massive second hand and poor quality leather related imports. These imports at most affected their competitiveness and productivity denying the both the stratums accruable potential available in the country’s leather sector. The overall results indicated that trade activities were significant (p<0.05) to the value chain stratum. This result was important as appropriate interventional measures would therefore go a long way in optimizing on trade related benefits to the socio-economic dimension of the country such as employment, wealth creation and rural development.