In a bid to boost local production in leather in the country, the Ministry of Industry, Trade and Cooperatives, through its implementing agencies, the Export Processing Zones Authority (EPZA) and the Kenya Leather Development Council (KLDC), have today morning held an investor briefing on Kenya’s first Leather Park at Kinanie, Machakos County. The event was held at Radisson Blu Hotel and was presided over by the Cabinet Secretary for Ministry of Industry, Trade and Cooperatives, Hon. Adan Mohamed, EGH.

And in line with the country’s Industrial Transformation Program that detailed the implementation plans turn around in the leather sector, the Government has today given the investment community in the leather sector the first Government led industrial development zone since 1992 when the Export Processing Zones were unveiled (24 years later!).

The development of the Kenya Leather Park is guided by Kenya’s Vision 2030, the country’s economic development blueprint, that aims to transform Kenya into a newly industrialized, “middle-income country providing a high-quality life to all its citizens by the year 2030”.

The Kenya Leather Park (KLP) will be set on a 500-acre site with the aim of encouraging value addition and innovation towards unlocking economic potential of the Leather sector in Kenya.  It aims to create an enabling environment for the attraction and facilitation of increased Foreign and Domestic Direct Investments into Kenya.  Currently 90% of Kenya’s leather exports equivalent to USD 94 million are unfinished wet blue leather. Further processing of finished leather and leather goods will create an additional 35,000 jobs which will increase the GDP to between USD 150-250 million in GDP .This will also contribute to substituting a portion of USD 86 million in shoe imports yearly.

Giving remarks at the event, Kenya Leather Development Council Chairman, Mr. Titus Ibui said that he was glad that KLDC was amongst the stakeholders involved with project, furthermore being tasked with the key role of advising potential investors on best practices in relation to customer preferences and market trends in the Kenya leather industry.

“Together with other stakeholders involved with this project we wish to propel the leather industry in this country to greater heights”. He said.

According to the Kenya Leather Industry diagnosis strategy and action plan, the leather demand has risen globally and is expected to continue in the same trend. Leather production globally is at USD 100billion with Africa contributing to USD 4billion of the production while Kenya contributes a supply of USD 140 million of production.

Kenya is a country with exuberant opportunity that if fully exploited will make the Leather industry more lucrative, therefore attracting investors. Some of these opportunities include availability of raw materials from both local and in the East Africa Community, untapped local and regional market for footwear and leather goods, an environment whereby the middle class is rapidly expanding, a stable and strong political economy, developed financial services among others.

The development of the Kenya Leather Park is geared towards promoting the sector through facilitating leather footwear manufacturers, leather tanneries, packaging and logistics companies including small and medium enterprises. Other opportunities include a training center, low costs of labor and electricity, EPZ benefits on taxation and trade as well as integrated amenities such as residential complex, schools, health facilities and recreation center.

KLP will comprise of a high-tech shared effluent treatment plant with adequate water supply. It shall also feature Industrial facilities for tanneries and manufacturers of leather goods and will have showroom facilities to showcase the finished products. The residing areas will also have residential complex, schools, training centres and health facilities.

Giving his remarks, the Cabinet Secretary of the Ministry of Industry, Trade and Cooperatives, Mr. Adan Mohamed, EGH said that “The Kenya Leather Park will open various channels for Kenya leather to benefit from as well as drive the economic growth. In line with the economic pillar of vision 2030 the KLP is one of the key developmental projects that will drive the country in achieving its target of an average economic growth rate of 10% per annum.

The Kenya Leather Park will also provide potential investors with incentives ranging from substantial tax benefits along with a wide range of park services that will allow quick ramp up and international competitiveness.

Potential investors can access and fill the application form from www.kenyaleatherpark.go.ke and attached proof of a registered company, projected marks and projected investment. Applicants should also make a commitment payment of Kshs. 1million that will be refundable on ground breaking and address the application to the Kenya Leather Development Council.