The Government of Italy has committed to revitalizing Kenya leather and tanning industry across Kenya and the broader East and Central African region. The initiative, anchored by Equity Group as a strategic financial partner, seeks to transform Kenya into a regional leather hub by enhancing production capacity, technology exchange, and sustainable value chain development.
During a high-level stakeholder forum hosted at the Equity Centre, Italian Ambassador to Kenya Roberto Natali affirmed his country’s readiness to share technical expertise and support infrastructure development, citing Kenya’s untapped potential with over five million animal skins wasted annually.
“Kenya, with its abundant livestock and evolving industrial landscape, is well-positioned to become a leather processing powerhouse,” Natali noted, emphasizing youth employment and technology transfer as key pillars of the partnership.
Building Regional Capacity Through Public-Private Collaboration
The Italian delegation—comprising tanners, machinery manufacturers, and chemical suppliers—embarked on a week-long tour, visiting livestock farms, slaughterhouses, and leather processing units such as Farmers Choice, Ikwetta, Reddamac, and Alpharama. The aim: to understand local supply dynamics and develop strategic linkages with stakeholders across the leather ecosystem.
Backed by Kenya’s Ministry of Agriculture and Livestock Development and the Ministry of Investments, Trade and Industry, the initiative aligns with national priorities to strengthen value addition in agriculture and manufacturing. Principal Secretary Jonathan Mueke, represented by Kenya Leather Development Council CEO Dr. Isaack Noor, reiterated the government’s commitment to creating an enabling investment climate.
“The government is scaling infrastructure like the Kenanie Leather Industrial Park and expanding slaughterhouse training to improve skin quality and investor readiness,” Dr. Noor said, highlighting policy frameworks such as the Foreign Investment Protection Act.
Equity Group’s Role: Driving Sector Financing and Market Expansion
Equity Group Chief Strategy Officer Brent Malahay unveiled the bank’s sector investment strategy under the Africa Recovery and Resilience Plan (ARRP). With a focus on 12 growth sectors—including leather—Equity is positioning itself as a funding and insurance partner for stakeholders across the value chain.
Kenya currently hosts 13 registered tanneries with a combined capacity of over 31,000 tonnes of hides and 15,600 tonnes of skins annually. Malahay emphasized opportunities for value addition and global competitiveness, noting existing infrastructure and business clustering as foundational advantages.
“We are inviting investors to explore expansion in a sector with robust production assets and government-backed legal protections,” he added.
Italy’s Global Expertise to Catalyze Kenya’s Leather Potential
Entities such as UNPAC, UNIC, ICEC, and ASSOMAC have pledged ongoing support in equipment, chemical innovations, quality standards, and European market access. ASSOMAC General Director Agostino Apolito underscored Italy’s willingness to partner with farmers and processors to modernize Kenya’s leather industry.
Alpharama Case Study: From Regional Leader to Global Exporter
Sambasiva Rao, Managing Director at Alpharama Tannery in Athi River, lauded Equity’s financial support in driving regional growth, describing how local sourcing and process improvements have enabled entry into international markets.
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