The government, through Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui, has announced the signing of a lease agreement valued at Ksh 5 billion.
In a statement on August 7, 2025, the ministry stated that the agreement was between the Kenya Leather Development Council (KLDC) and the Export Processing Zones Authority (EPZA).
“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,” he said.
The lease agreement was signed by KLDC Board Chair Mohammed Adan, KLDC CEO Dr. Issack Noor, EPZA Board Chairperson, and EPZA CEOs Richard Cheruiyot and Richard Omelu.
Lee Kinyanjui Announces Kenanie Leather Industrial Park to Begin Operations
The agreement will pave the way for the operationalisation of the Kenanie Leather Industrial Park in Machakos County, with 36 investors already lining up to take spaces in the tanneries and warehouses available.
Additionally, the lease agreement effectively ends a decade-long delay in activating the leather park, which is already equipped with key infrastructure, including tanneries, leather manufacturing warehouses, serviced plots, water and electricity connections, ICT systems, and a common effluent treatment plant.
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The move is expected to unlock investment opportunities, stimulate local production, and create both direct and indirect jobs across the value chain.
“This milestone marks a significant step toward onboarding investors into the leather sector and is expected to generate both direct and indirect employment opportunities,” read part of the statement.
He noted that Kenya currently faces a shortage of quality hides and skins, forcing local manufacturers to rely on imports.
The CS challenged the KLDC to work closely with slaughterhouses and train them on best practices to minimize hide and skin damage at the source.
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Development of Kenya Leather Park
The Kenya Leather Park (KLP), located in Kenanie, Machakos County, spans over 500 acres and aims to provide a one-stop shop for leather, footwear, leather goods, and allied industries.
The joint venture between KLDC and the Export Processing Zones Authority (EPZA). Presently, applications for space at the park by potential investors are ongoing. The facility has a capacity to produce 10 million pairs of shoes per year. This will boost livestock farmers’ earnings and create employment.
The park is expected to boost local manufacturing, cut import costs, and create over 100,000 jobs, up from the current 17,000, once fully operational.
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