KCB Group has entered into two key partnerships aimed at addressing long-standing bottlenecks in Kenya’s leather industry, in a move expected to accelerate growth, boost value addition, and position the sector as a major contributor to the country’s industrialisation agenda.
The lender announced agreements with the Kenya Leather Development Council (KLDC) and private sector firms Alpharama Limited and Ranch Experts, targeting inefficiencies that have historically undermined productivity and profitability across the leather value chain.
Under the collaboration with KLDC, KCB will focus on strengthening the broader ecosystem through increased investment, improved coordination among stakeholders, and capacity-building initiatives. The partnership also seeks to expand access to financing, enhance market linkages, and support the development of infrastructure needed to scale production.
A second agreement involving Alpharama Limited and Ranch Experts will concentrate on the industrial segment, with plans to boost processing capacity and establish a more integrated, end-to-end value chain. The initiative aims to connect livestock producers more directly to manufacturers and global markets while providing tailored financial solutions to businesses within the sector.
The twin deals come at a time when Kenya’s leather industry is widely viewed as underutilised despite its significant potential. Government estimates suggest the sector could generate over Sh150 billion annually and create more than 500,000 jobs if fully developed.
However, the country continues to lag behind this potential. Despite a livestock base of over 20 million cattle, 30 million sheep, and 40 million goats, much of Kenya’s hides and skins are exported in raw or semi-processed form, limiting value addition and reducing earnings.
Current export revenues remain below Sh10 billion annually, reflecting challenges such as fragmented supply chains, limited processing infrastructure, and inadequate investment in value addition.
KCB says its intervention will focus on financing critical nodes within the value chain, including livestock farmers, tanneries, and manufacturers, while fostering stronger linkages between them.
The bank noted that the partnerships align with Kenya’s broader industrialisation strategy, which emphasises local manufacturing and value addition as drivers of sustainable economic growth.
Globally, the leather industry is valued at more than $400 billion, offering Kenya a significant opportunity to expand its footprint, particularly in segments such as footwear, garments, and automotive leather.
KCB Executive Head of Client Coverage and Business Development, Peter Ng’eno, underscored the need for a coordinated approach, noting that unlocking the sector’s potential will require deliberate investment across the entire value chain.
The agreements were signed during a leather-focused side event at the Kenya International Investment Conference 2026 in Nairobi, signalling renewed momentum to transform the sector into a competitive and high-value contributor to the economy.
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