State plans to boost local leather production with new facilities in Northern Kenya
Somewhat similar to Nairobi's Kariokor leather market, the initiative will focus on creating a space dedicated to the local production of leather products.
The government is exploring plans to develop leather production and market facilities in the northern part of Kenya, a region that domiciles a majority of livestock keepers.
This is in an effort to capitalise on the country's significant livestock sector potential, which ranks highly globally in production, yet falls short in processed leather exports.
Somewhat similar to Nairobi's Kariokor leather market, the initiative will focus on creating a space dedicated to the local production of leather products, with particular emphasis on benefiting animal farmers in marginalised communities.
Located near the city centre, Kariokor leather market is a vibrant and bustling marketplace known for its wide variety of leather products.
It is a popular destination for both locals and tourists looking to buy high-quality leather goods, including bags, shoes, jackets, belts and wallets.
Additionally, the market is famous for offering handcrafted, durable items often directly from local artisans.
Speaking earlier in the week during a stakeholder meeting on the scope of Kenya’s leather sector, State Department of Industry Principal Secretary Juma Mukhwana said the Kariokor facility is a good case study that can be used to develop other facilities in other parts of the country.
“We can tap into Marsabit, Isiolo, Turkana and West Pokot, which have a large number of these animals,” Mukhwana said.
With the establishment of these facilities, the government hopes to enhance the leather production process from raw material to finished product, providing farmers with a reliable and profitable market for their livestock.
The initiative is also expected to foster job creation and skill development in leather processing, boosting local economies in the targeted counties.
Livestock Development Principal Secretary Jonathan Mueke in October last year highlighted that the country’s leather sector is among the sectors that the government is eagle-eyed about in matters of job creation.
He noted that the government is targeting 120,000 jobs, up from the current 21,000, which would inject Sh100 billion into the economy annually by 2027 from the current Sh20 million.
Additionally, by improving production standards, the facilities could pave the way for increased export trade, opening up international markets for the region’s leather goods.
“We have a large livestock population, but export very few hides. I think we need to learn from what other countries in the region are doing. We need to map all the players, from the slaughterhouses to the tanneries, to improve this,” PS Mukhwana said.
Also, present during the stakeholder engagement, Equity Bank CEO James Mwangi noted the need for the government to create good policies and play a facilitative role to encourage the private sector to venture more into the leather business.
“Livestock and its value chains are very big, and we urgently need the private sector to invest. We will act as a financial catalyst because the government has already played its part,” Mwangi said.
“We’ve set up a dedicated desk for the European market, focusing on Germany, and are collaborating with embassies to unlock new markets. We’re also taking critical steps to de-risk investments.”
On his part, Kenya Investment Authority (KenInvest) CEO John Mwendwa said Kenya's leather sector offers immense value addition from wet blue exports to finished goods, and such initiatives will be unlocking new opportunities.
“While we have strong local demand of 25 million plus pairs of shoes, we are focused on enhancing technical skills, market access and capital for SMEs to produce high-quality finished leather,” Mwendwa said.
According to Kenya Institute for Public Policy Research and Analysis (Kippra) Policy Brief No.20/2022-2023, Kenya’s leather exports consist of semi-processed tanned “wet blue” leather at (90%), raw hides and skins at (5%), finished leather (2%) and (3%) leather footwear.
The latter is the biggest leather goods sub-sector in the country, while handbags are the most competitive.
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