In a recent announcement, President William Ruto declared his intention to implement a ban on the importation of leather products within a two-year timeframe. This bold move aims to promote and protect the local leather industry, stimulate economic growth, and create employment opportunities. The decision is set to spark a debate among stakeholders, as did the ban on mitumba imports in 2020, which was eventually lifted after stakeholder consultations.
Read more: Dollar Scarcity Hurts Importers And Manufacturers
The decision to ban leather product imports reflects a commitment to supporting domestic industries. By curbing shoe imports, which the president quoted shoe imports at Kshs 9.0 billion annually, the government aims to provide local manufacturers and artisans with a level playing field, enabling them to thrive and expand their operations. This move can lead to increased investment in the leather sector, driving innovation, improving quality, and bolstering the industry’s contribution to the national economy.
The ban on leather imports is expected to have positive implications for economic growth and job creation, estimated to be 80,000 jobs. By promoting local production, the government aims to boost revenue generation and reduce the trade deficit. The growth of the leather industry will create job opportunities across the value chain, including farming, tanning, manufacturing, distribution, and retail. This initiative aligns with the government’s efforts to create a favourable business environment and reduce unemployment rates.
Read more: Moses Kuria Makes U-turn On Mitumba Ban After Uproar
While the ban may be seen as a protectionist measure, critics argue that it could strain international trade relations and limit consumer choices. With Kenyan-made shoes seen as being more expensive than imported ones, it remains to be seen whether the local industry will be able to bridge the supply-demand gap after the ban comes into effect. It is essential for the government to strike a balance between safeguarding local industries and maintaining healthy trade partnerships. Alternative approaches, such as fostering collaborations between local and international stakeholders, implementing quality standards, and providing incentives for innovation, could be explored to mitigate potential negative impacts.
Read more: Kenya’s Export Earnings Grew to Kshs 873.1 Billion in 2022 – KNBS
The plan to ban leather product imports has the potential to stimulate economic growth, create job opportunities, and strengthen the nation’s self-reliance in the sector. While concerns about trade relations and consumer choices exist, finding a balanced approach that fosters collaboration and innovation could ensure the long-term success of the leather industry while maintaining healthy international trade partnerships. The implementation of this ban will be a crucial step towards realizing the country’s vision for a thriving and sustainable domestic leather sector.