FEATURED STORY

Athi River set for Ksh17 billion leather tannery

Share
Share

The government has embarked on a plan to build a Leather City in Machakos county to help limit exportation of raw hides and skins to developed nations.

The move comes as Kenyans continue to grapple with high rates of unemployment and the project will create millions of jobs once it fruitions. Industrialisation Cabinet Secretary Adan Mohamed said the project will help Kenya’s quest for Vision 2030 become more realistic as the government plans to transform the country to an industrialised nation.

“Over 90% of our products are exported in wet blue form and we need to convert these to finished products that can fetch good global markets,” noted the CS on Tuesday. “We have abundant supply of raw hides and skins and the world-class-industrial city at Kinanie will generate revenue and create jobs in developing finished leather goods.”

Dubbed the Leather City, the project will be located at Kinanie in Machakos County near Athi River on a 500-acre government land. The central government has already allotted Ksh1billion to this project in the current financial year. The project, deemed to cost around Ksh17billion, will be funded mainly by private investors in what is a departure from the past with the government providing land and infrastructure such as roads and effluent treatment plant.




The Leather City will house tanneries, a training centre, common manufacturing facilities and a common Effluent Treatment Plant (ETP). The initial phase will target 15 tanneries each with a production capacity of 10 tonnes of raw hides and skins per day and at least 10,000 pairs of shoes, industrial gloves and leather garments. The CS encouraged all tanneries located across the country to be part of the initiative and join the City as a way of sharing infrastructure.

“We are giving land and infrastructure to investors and it will be prudent if all tanneries located across the country come to Kinanie where infrastructure will be shared hence killing uncertainties about the future of the leather industry.”

The ground-breaking ceremony is slated for February and the government is urging investors to get a slice of the land and in turn help spur development in the sector. Meanwhile the government is mooting a partnership-based relationship with institutions of higher learning to help in development of soft skills and capacity building as a way of adding value to the sector.

Written by
BUSINESS TODAY -

editor [at] businesstoday.co.ke

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
The Origins of Commercial Banking in Kenya
ECONOMYFEATURED STORY

The Origins of Commercial Banking in Kenya

Kenya is rich in type, number and sophistication of financial institutions. The...

What to Know about President Ruto’s Planned Nationwide Livestock Vaccination Programme
FEATURED STORYNEWS

What to Know about President Ruto’s Planned Nationwide Livestock Vaccination Programme

The nationwide livestock vaccination programme “against diseases,” planned for January next year,...

2024 SkyTeam Aviation Challenge
FEATURED STORY

Kenya Airways Shortlisted for 2024 SkyTeam Aviation Challenge

Kenya Airways (KQ) is the only African airline that has been shortlisted...

Affordable Housing Project
FEATURED STORY

Govt Puts Up For Sale 4,888 Affordable Housing Units: Here’s The Full List And How To Buy

The government has put up for sale 4,888 affordable housing units across...