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KLDC and EPZA sign lease agreement for Sh5 billion Kenanie Leather Industrial Park in Machakos

The signing of lease agreement ends a 10-year delay in operationalising the industrial park and is expected to generate both direct and indirect employment opportunities

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), paving the way for the operationalisation of the Sh5 billion Kenanie Leather Industrial Park in Machakos County.

This marks a significant step toward onboarding investors into the leather sector and is expected to generate both direct and indirect employment opportunities.

Cabinet Secretary Lee Kinyanjui, who witnessed the signing of the agreement at his office, emphasised 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 offer training on best practices to minimise damage to hides and skins at the source.

The signing of lease agreement ends a 10-year delay in operationalising 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 Mohammed Adan, KLDC CEO Dr Issack Noor, EPZA Board Chairperson Richard Cheruiyot and EPZA CEO Richard Omelu.

Also present were Industry Principal Secretary Dr Juma Mukhwana, and his Investment counterpart Abubakar Hassan.

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