Lease Agreement Unlocks Sh5 Billion Kenanie Leather Park After 10-Year Delay

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NAIROBI, Kenya– The government has moved to revitalize Kenya’s leather industry following the signing of a lease agreement between the Kenya Leather Development Council (KLDC) and the Export Processing Zones Authority (EPZA) to operationalize the long-stalled Kenanie Leather Industrial Park in Machakos County.

The deal, which clears a decade-long impasse, will unlock the Sh5 billion facility, opening the door for investment in leather manufacturing and value addition. 

The development is expected to create both direct and indirect employment, significantly boosting Kenya’s industrial base.

Speaking during the signing ceremony in Nairobi, Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui, underscored the park’s potential to transform the sector and benefit livestock farmers.

“Leather is a multi-billion-shilling industry which, if properly harnessed, can transform the livelihoods of livestock farmers and boost economic growth through local production and export,” said Kinyanjui.

He noted that the local market still faces supply shortages, forcing many manufacturers to import hides and leather products. 

Kinyanjui urged KLDC to work closely with slaughterhouses and offer training on proper handling to minimize damage to hides and skins at the source.

The Kenanie Leather Industrial Park is fully equipped with modern infrastructure, including tanneries, manufacturing warehouses, serviced plots, electricity, water, ICT infrastructure, and a common effluent treatment plant. 

Its operationalization is expected to attract investors and stimulate local manufacturing.

Kinyanjui maintains the move is part of government’s broader agenda of industrialization, job creation, and export growth through value addition in the leather sector.

Phidel Kizito
Phidel Kizito
Phidel Kizito Odhiambo is a seasoned journalist and communications professional with over five years’ experience in storytelling across Kenya’s top newsrooms, including Capital FM, Standard Media, and Jedca Media. Skilled in digital journalism, strategic communications, and multimedia production, he excels at crafting impactful narratives on an array of beats, including business, tech, and sustainability.

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