Evaluation of Productivity Responses from the Leather Value Chain Strata in Kenya

Abstract

Productivity is fundamental in addressing key economic indicators such employment, wealth creation, trade, competiveness and rural development in Africa. The inattentive attitude towards the importance of productivity in most African countries has culminated to problems that entail lack of sustainable productivity framework in their commodity development. In retrospect, as a panacea the value addition initiatives being set up in the continent should as a prerequisite take cognizance of productivity to its livestock agro-based production chain. This background, therefore, prompted the significance of this study to focus in identifying and examining the survey responses from the leather strata in Kenya related to productivity. In addition, the study evaluated the significance of the interrelationship between various stratums that interphase in the value creation process of the leather sector influence activities related to productivity. During the prognosis, a quantitative approach (n=244), descriptive analysis including an aggregate score to ascertain the top activities impacting on productivity in Kenya was carried out. The results indicated that whilst producers were mainly concerned with transport related costs, skilled man power attributed a major constraint amongst the slaughterhouse, traders, tanners and footwear. However, tanners involved with the processing of the hides and skins, identified enhancement of Total factor of productivity (TFP) as fundamental to their productivity. This was a significant result as it illustrated appropriate focus on management of costs and enhancing productivity to spar generation of tangible value-addition initiatives and transform the leather strata to be competitive. Thusly, the overall results indicated that productivity related activities were significant (p<0.05) to the value chain stratum. Therefore, this observation strengthened the aspect of considering productivity as fundamental in the leather sector’s quest for achieving higher performance in the leather strata value addition initiatives in Kenya.