Kenya has handed over the first warehouse at the Kenya Leather Industrial Park (KLIP) in Kinanie region to Realeather Limited, marking the start of private investment at the facility. The government expects the investment to help increase local leather production and value addition.

Principal Secretary for the State Department for Industry, Dr. Juma Mukhwana, commissioned the warehouse and urged Realeather to begin operations immediately, citing a shortage of leather in the Kenyan market.

Realeather has invested $4 million in the facility in partnership with Hong Kong based Jashon International Group. The company will produce suede leather, shoes, leather gloves and accessories for Kenyan and international markets.

The factory will initially employ 200 workers with the workforce expected to grow to more than 500 as production expands. Realeather said it chose Kinanie because of its available space, business environment and government investment policies.

Mukhwana also called on the Kenya Leather Development Council (KLDC) to create investor friendly policies to attract more companies to the park and expand leather production for Kenya, the East African Community and international markets.

The government is also developing infrastructure inside the park, including an administration block that will house the Kenya Bureau of Standards, Kenya Revenue Authority, Export Processing Zones Authority, banks and restaurants. A police station, laboratory, power substation and effluent treatment plant are also being developed.

KLDC CEO Jimmy Odhiambo said the investment is expected to strengthen local manufacturing, reduce import spending, create jobs and support growth in Kenya’s leather industry.

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