Government Signs Lease to Operationalize Ksh 5B Kenanie Leather Industrial Park

By Grace Gilo

The Ministry of Investments, Trade and Industry has announced the signing of a lease agreement between the Kenya Leather Development Council (KLDC) and the Export Processing Zones Authority (EPZA).

This pivotal agreement paves the way for the operationalization of the Ksh 5 billion Kenanie Leather Industrial Park located in Machakos County.

This milestone marks a significant step toward attracting investors to the leather sector, which is anticipated to create both direct and indirect employment opportunities.

Cabinet Secretary for Investments. Trade and Industry, Hon, Lee Kinyanjui, witnessed the signing ceremony in his office and emphasized the urgency of making the park fully operational.

“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 CS noted that due to limited local supply, many footwear and leather goods manufacturers are currently forced to rely on imports. He challenged KLDC to actively engage slaughterhouses and provide training on best practices to reduce damage to hides and skins at the source.

The lease agreement effectively ends a 10-year delay in operationalizing the Kenanie Leather Industrial Park.

The park is equipped with modern infrastructure, including tanneries, leather manufacturing warehouses, serviced plots, electricity, water, ICT infrastructure and a common effluent treatment plant.

The lease agreement was signed by KLDC Board Chair Capt. Mohammed Adan, KLDC CEO Dr. Issack Noor, EPZA Board Chairperson, and EPZA CEO Richard Cheruiyot and CEO Richard Omelu.

Also present were the Principal Secretary for Industry Dr. Juma Mukhwana, and the Principal Secretary for Investment, Mr. Abubakar Hassan.