State eyes Sh175bn annually from revamped leather industry

Business Daily

Nairobi, Kenya (06 January 2025) – The State is eyeing a Sh175 billion annual turnover from a revamped leather industry, up from the current Sh15 billion, a top official said.

Deputy president Kithure Kindiki, while inspecting work on the planned Kinanie Leather Park in Machakos County on Monday, said the leather industry holds huge potential for economic transformation.

“Kenya’s economic transformation depends to a significant extent on growth in value addition of our raw materials and expansion of manufacturing across key value chains,” he told leather industry stakeholders.

The Sh17 billion mega project, sitting on a 500-acre parcel of land, will include 14 tanneries and an effluent treatment plant (ETP) with 12 modern stalls. The project is currently 95% complete with officials targeting ambitious exports of 10 million pairs of shoes annually.

“Establishing the leather park is one facet towards value addition and manufacturing in an effort to push the annual contribution of the leather industry from the current Sh15 billion to Sh 175 billion and industry jobs from 17 000 currently to 100 000,” Prof Kindiki added, revealing that the park is slated to be complete by 31 March 2025.

The national government-funded project is under the Ministry of Industry, Trade and Cooperatives, through the Kenya Leather Development Council and the Export Processing Zones Authority as implementing agencies.

The project is expected to be a major artery to neighbourhood economic boost attracting other investors in the area who in return will create employment.

DP Kindiki was accompanied by Acting Cabinet Secretary for Agriculture and Livestock Development Aden Duale, Principal Secretary for Livestock Development Jonathan Mueke, and other senior government officials.