Equity Group has pledged to support farmers and traders within the leather industry value chain, aiming to establish Kenya as a continental and global leader in the sector.
The commitment was shared by Equity Group Managing Director and CEO, Dr. James Mwangi, during a roundtable discussion on “Enhancing Opportunities and Strengthening the Leather Value Chain in Kenya” held at Equity Centre. The event was organized by Equity in collaboration with the Kenya Investment Authority (KenInvest) under the Ministry of Investments, Trade, and Industry (MITI).
This roundtable discussion follows a cooperation agreement between Equity and KenInvest, focused on revitalizing Kenya’s investment landscape, with an emphasis on key sectors, starting with the leather industry.
During the event, Dr. Juma Mukhwana, P.S for the State Department of Industry in the Ministry of Investments, Trade, and Industry, expressed his gratitude to Equity for its leadership role in supporting Kenya’s leather industry. He highlighted the government’s efforts to prioritize the sector in its manifesto but emphasized that private sector involvement was key to unlocking its full potential. “Equity’s leadership in financing sector players is a significant boost. As a government, we applaud the bank for its support, which will play a crucial role in job creation and transforming the industry,” said Dr. Mukhwana.
Jonathan Mueke, PS, for the State Department for Livestock Development in the Ministry of Agriculture and Livestock Development, echoed these sentiments, underlining the importance of private sector collaboration. “The government has created an enabling environment with the necessary policies and incentives. Equity’s involvement as a private sector financial catalyst will help commercialize the leather industry, thereby transforming lives,” said PS Mueke.
In his remarks, Dr. Mwangi emphasized that Equity is committed to strengthening Kenya’s local leather industry, financing livestock farmers and traders to make Kenya a leather production hub in Africa. “With the policy framework now in place, we are prepared to play our catalytic role in making leather industry players competitive, not just in Africa but globally. Equity has set up mechanisms, including a German Desk, to help farmers and traders access European markets. We are also collaborating with embassies to unlock new markets,” said Dr. Mwangi. He invited industry players to collaborate with Equity in establishing sustainable and high-quality leather production, creating investments and jobs.
KenInvest CEO, John Mwendwa, lauded the roundtable as a pivotal moment for discussing the challenges and opportunities within Kenya’s leather industry. “Thanks to Equity, this discussion has given us a platform to address the issues and opportunities facing the sector. The outcomes from these discussions will help inform a global pitch on the leather industry for the benefit of farmers, traders, and other stakeholders,” said Mwendwa.
Dr. Mwangi further emphasized that Equity is already actively supporting industry players by aligning their financial needs with solutions. He highlighted the example of Alpharama Ltd. in Athi River, a leading leather producer and exporter, which has benefited from Equity’s support in accessing key regional markets, including Uganda, Tanzania, South Sudan, and the Democratic Republic of Congo (DRC).
Alpharama CEO, Dr. Pamidimukkala Venkata Sambasiva (P.V.S.) Rao, acknowledged the vital role Equity has played in the company’s expansion plans. “Equity’s support has been instrumental in our success, and with their help, we are set to begin operations in the DRC in the next few months. We urge the private sector to join Equity in supporting leather industry stakeholders, particularly in areas such as human resource training, tannery equipment, slaughterhouse management, and quality control, to significantly increase production,” said Dr. Rao.
The Kenya Association of Manufacturers (KAM) and the Kenya Private Sector Alliance (KEPSA) both commended Equity for facilitating the roundtable discussion and leading the charge in enhancing the leather sector. KEPSA CEO Carole Kariuki remarked, “Kenya’s leather industry has immense potential to drive economic growth and position the country as a continental and even global leader in leather production. Equity’s collaboration with partners like IFC to de-risk industry players is commendable. With the right government policies and financial backing from institutions like Equity, Kenya can unlock its vast potential in this sector and create jobs.”
Through these partnerships, Equity Group is reinforcing its role as a key driver of economic transformation in Kenya’s leather industry, contributing to the creation of a more competitive, sustainable, and globally recognized sector.
