First investor handed commissioned warehouse at Kenya Leather Park

The government has officially commissioned and handed over the first warehouse at the Kenya Leather Industrial Park in Kinanie, Athi River, to the first private investor, marking a major milestone in Kenya’s quest to revive its leather industry.

Principal Secretary for the State Department for Industry, Dr. Juma Mukhwana, commissioned the facility and handed it over to Realeather Limited, the first investor to set up operations at the park.

Speaking during the commissioning ceremony at Kinanie, Dr Mukhwana congratulated Realeather Limited for pioneering investment in the park and challenged the firm to commence operations immediately.

“There is a shortage since we don’t have enough leather for the Kenyan market and so we urge the investor to start immediately to bring in the machines and workforce,” Dr. Mukhwana said.

The PS said Kenya needs to significantly scale up leather production to meet demand in the local, East African Community and international markets, noting that the government has targeted bilateral frameworks to drive domestic value addition.

He expressed optimism that the entry of the first investor would ignite more interest in the sector and called on the Kenya Leather Development Council (KLDC) to develop investor-friendly policies to attract more firms to establish tanneries and leather value-addition factories at the park.

Dr. Mukhwana also inspected the administration block, which is nearing completion. He said the block will host key service providers including the Kenya Bureau of Standards (KEBS), Kenya Revenue Authority (KRA), Export Processing Zones Authority (EPZA), banks and restaurants to ensure all essential services are available within the industrial park under one roof.

He also inspected the police station under construction situated inside the park, laboratory, the Power Substation and the modern effluent treatment plant (ETP) which he said are major investment in Kinanie by the government and also part of Bottom-up economic transformation agenda (BETA).

Realeather Limited Director, Kennedy Waiyaki, said the company has invested USD 4 million in the facility in partnership with Hong Kong-based Jashon International Group.

Waiyaki said the firm will focus on production of suede leather, shoes, leather gloves and accessories targeting both the Kenyan and international markets.

“We have been looking forward to starting production and we appreciate the government for the support,” said Waiyaki.

He said the company chose Kinanie due to its vast space, conducive environment and the government’s favorable investment policies.

The investors revealed that the factory will initially employ 200 workers, with the workforce expected to grow to over 500 as operations expand.

According to KLDC CEO Jimmy Odhiambo, the investment is expected to strengthen local manufacturing, lower import expenditure, generate employment for Kenyans and boost growth in Kenya’s leather industry.