Athi River set for Ksh17 billion leather tannery

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.

Latest

Borrowers Tie Lenders in Web of Litigation as Defaults Rise

In early June, Equity placed TransCentury and East Africa Cables under receivership after declining a request to write off over Ksh2.8 billion ($20 million) debt owed by TransCentury Plc and another Ksh1.948 billion owed by its subsidiary.

SasaPay To “Pay SMEs To Get Paid” Via New Cash-Back Model

SasaPay has introduced a new cash-back model designed to...

Gor Mahia Fan Who Correctly Predicted 15 Out of 17 Games Wins Millions

The 30-year-old, also an avid follower of English Premier League giants Manchester United, came close to the grand prize of Ksh334,783,843 SportPesa Jackpot.

In Race for African Leadership Award, Ruto Faces Tough Opposition

Among the contenders of the prestigious African of the Year award is Kenya’s President William Ruto, who will be battling it out with President Hakainde Hichilema of Zambia and Prof. Benedict Okey Oramah, President of Afrexim Bank.

Follow Us

Newsletter

Don't miss

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.

DStv Beats CNN, BBC To Become Most Admired Media Outlet In Africa

DStv, MultiChoice Group’s leading broadcast service, has been named...

MultiChoice Revises Subscription Fees For DStv, GOtv

MultiChoice has announced price adjustments on some of their...

Octopizzo: How I Make My Money

"I've been doing this for 12, 13 years. It reaches a point where you no longer need to prove that you can make a hit record," he stated.

New Spotify EQUAL Artist Qing Madi Talks Music and Dreams

Heavily influenced by her cultural background and the lyrical arrangements of Kendrick Lamar, the versatile Nigerian prodigy is shaping the future of music with her unique genre-bending fusion of Afrobeats, Pop, Soul and R&B.

Bob Collymore Immortalized in New Festival

The late Collymore was famous for his love for jazz and even initiated the Safaricom Jazz Festival, which saw several of the world's biggest Jazz artists perform in Nairobi.
BUSINESS TODAY
BUSINESS TODAYhttps://businesstoday.co.ke
editor [at] businesstoday.co.ke

Borrowers Tie Lenders in Web of Litigation as Defaults Rise

In early June, Equity placed TransCentury and East Africa Cables under receivership after declining a request to write off over Ksh2.8 billion ($20 million) debt owed by TransCentury Plc and another Ksh1.948 billion owed by its subsidiary.

SasaPay To “Pay SMEs To Get Paid” Via New Cash-Back Model

SasaPay has introduced a new cash-back model designed to empower business owners to reduce costs and bolster profitability by receiving compensation for collecting payments...

Gor Mahia Fan Who Correctly Predicted 15 Out of 17 Games Wins Millions

The 30-year-old, also an avid follower of English Premier League giants Manchester United, came close to the grand prize of Ksh334,783,843 SportPesa Jackpot.

LEAVE A REPLY

Please enter your comment!
Please enter your name here