Kenyan shoe manufacturers could benefit from tax b - footwearbiz: Lead

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Kenyan shoe manufacturers could benefit from tax break

16/10/2017
Kenya is aiming to boost the supply of material for its domestic leather industry by removing the tax on imports of raw hides and skins, according to the cabinet secretary for industry, trade and cooperatives, Adan Mohamed.

Speaking at a media briefing in Nairobi on October 10, Mr Mohamed said this move is designed to encourage value addition by local leather and footwear manufacturers.

He added that discussions with the Kenyan national treasury are scheduled to begin soon with a view to eliminating the import duty by mid-2018. 

Mr Mohamed pointed out that the country is missing out on “significant foreign exchange earnings” by mostly exporting unprocessed or semi-processed leather. This could be remedied by exporting more finished leather and footwear, he said.

In August 2016, the Kenyan government pledge to introduce regulations limiting the export of raw and semi-processed leather in order to encourage local value addition. 

Related stories:

Kenya takes footwear seriously in five-year plan 02/02/2018
Kenyan government sets aside money for leather parks 10/04/2017
Cheap imports harming Kenyan shoe manufacturers 02/03/2017
Untapped potential in Kenyan shoe sector 09/03/2016

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