SME’s to be integrated in Kenanie Industrail Leather City

Small and Medium Enterprises (SMEs) will be integrated in the proposed Kenanie Industrial Leather City, Cabinet Secretary for Industrialization and Enterprise Development Adan Mohamed has said. 

Speaking when he led a team of Government officials in touring the OSTIM Industrial Region in Ankara Turkey, Mr. Mohamed said since SMEs play a crucial role in Kenya’s development they will be allocated sufficient facilities so that the small businesses can support the growing needs for the sector and create employment. 

The OSTIM region in Turkey is one of the largest and most important small and medium-sized industrial production areas, and combines production flexibility with the advantages of a large machine park. OSTIM produces in 17 main sectors, houses 5,000 enterprises spread over 5 million square meters and employs over 50,000 people. Key sectors include textiles, leather, urban furniture, machine equipment and automotives.

Mr. Mohamed said the trip to Turkey will enable the Government address challenges the sector in Kenya is facing including standards, capacity and lack of market. It will also draw experiences from world class regions such as OSTIM to address historical issues that affect the Sector.

“Work sites have been a problem in the past and the integrated park will address this problem initially for the Leather Sector SMEs,” said Mr. Mohamed.

Last year, the Kenyan Government signed a Memorandum of Understanding with the Small and Medium Enterprises Organization of Turkey to support growth of the Sector during President Uhuru Kenyatta’s visit.

The Ministry of Industrialization announced this month the launch of the Leather Industrial City that is slated for ground breaking in February 2015.

Kenya woos Turkey's leather sector

CS Adan: Kenya is instituting a raft of measures to kick start the leather revival proces by creating a conducive environment to attract investors

The Government is stepping up efforts to revive Kenya’s leather sector, estimated to contribute KES 5.5bn to the country’s GDP when fully exploited.

Industrialisation and Enterprise Development Cabinet Secretary Adan Mohamed is currently in Turkey, to woe industrialists and investors in the sector.

Mr. Mohamed is instituting a raft of measures to kick start the revival process, by creating a conducive environment to attract investors.

Last year, he formed a taskforce to spearhead recovery of the sector in Kenya and recently announced an ambitious plan to establish a Kshs. 17bn leather industrial park located on a 500 acre land in Kinanie, Athi River in Machakos County.

Through the park, Kenya hopes to turn from being exporter of raw materials and semi-processed hides and skins to finished leather goods.

The first phase of the project will establish 15 tanneries, each with a production capacity of 10 tonnes of raw hides and skins per day and upto 10,000 pairs per day each of shoes, hand bags, leather garments and industrial gloves.

“Kenya is offering a world class investment location with the proposed Leather Zone and we encourage global players based in Turkey to invest in Kenya,” he assured the President of Turkey Leather Industries Association, Mr. Erdal Matras.

The investor session was attended by a 30 member strong delegation of investors in tanning, footwear, garments and saddlery from Turkey.

Mr. Mohamed is accompanied on the Trip by the Export Processing Zones Authority officials, Members of Parliament as well as the Kenyan Ambassador to Turkey, Kiema Kilonzo.

Kenya’s leather sector has an annual demand of 28 million units, out of which local suppliers account for 4 million units with the balance of 24 million units coming from imports.