Exemptions on imports and new duties on exports: Kenya is liking protectionism (but it doesn’t appear to be working)

Kenya’s government can’t get enough of protectionism. At the presentation for the leather cluster’s economic development (period going from 2017-2022), government officials explained that, starting in mid-2018, a fiscal exemption on raw and semi-finished hides may be approved by the government. Opposite to that is the thought on exports. In fact, Nairobi’s government plans on increase the duties on exports (already at 80% on nominal value) of raw materials for the leather industry. The government’s objective is to favor the whole production chain. The national shoe-making industry can be helped by, they say, favoring the national tanning industry, as the country’s balance between imports and exports favors the former. News was brought by Sauer Report, which shows how, even with these efforts, Kenyan tanning industry still suffers from a period of market downturn. The bovine segment is receiving increased interest from India, while the ovine segment has been favored by a good period with China, which unfortunately seems to already be ending.


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