Ewaso Ngiro Tannery and Leather Factory
The Authority is implementing Ewaso Ngiro Tannery and Leather factory project in Narok County in an effort to tap into this market. The Tannery project will utilize hides and skin for production of leather, which in most cases left to waste or fetch very low prices. Livestock population in Narok and Kajiado is estimated at 4M and 3M respectively. The project will be implemented in two phases, first phase targets processing of hides and skins to wet blue, which is a semi finished product. Phase two will implement leather finishing process i.e. from wet blue to leather.
Global trade in leather amounts to USD 77.5 Billion (Ksh 6.68 Trillions), but Kenya generates only 4.02 Billion, that contributes to 1.5% of GDP and 4% of agriculture sector GDP. In effort to achieve Vision 2030 goals in industrialization, Kenya Government increased raw hides and skins export taxes by 40%. The Ministry of Industrialization project that the local industry has a capacity to contribute up to USD630 million (Sh.5.5 billion) to the Gross Domestic Product (GDP). The industry generates 3,000 direct, and 60,000 indirect employment. Despite a heavy demand of up to 28 Million units of leather products, the demand is still served by imported supplies due to an existing deficit of more than 24 million units against local supply of less than 4 million units annually.