Govt Statement on Signing of Lease Between KLDC And EPZA on Ksh. 5 Billion Kenanie Leather Industrial Park

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 operationalization of the Ksh 5 billion Kenanie Leather Industrial Park in Machakos County.

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

Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui, witnessed the signing ceremony at his office and emphasized 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 minimize damage to hides and skins at the source.

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

Also present were the Principal Secretary for Industry Dr. Juma Mukhwana, and Principal Secretary for Investment Mr. Abubakar Hassan.

Ministry of Investments, Trade and Industry
August 7, 2025