However, the country can only meet half of the demand for cattle leather and 30 percent for lamb through domestic supplies. This explains the increased amount of imports made by China. To further worsen the situation, tanneries from US, European and Japanese countries have relocated in China to lower their cost of production.
Besides, hide imports from US accounts 65 percent of China's total supply and a rise in import duties from May 1 would make this transaction an expensive affair.
Hence, China is likely to import more from African countries including Kenya given that hides even after increased import duty would cost around 30 percent less compared to the US.
Kenya earned Sh185 million for leather exports to China in 2006, making it the country's third largest export to China, closely followed by hides and skins, worth Sh178 million.