Kenya’s leather industry is projected to grow to ~$800 million by 2040
An Investment Destination on the Rise
Kenya is unlocking the full potential of its leather industry — offering abundant raw materials, modern infrastructure, and unmatched access to global markets.
Why Kenya
Endowed with Raw Materials
Kenya boasts the 11th largest herd size globally, with over 80 million heads of livestock — a vast, sustainable source of high-quality hides and skins.
Growing Sector with Expertise
Kenya’s leather sector is set to grow from $80 million in 2022 to ~$850 million by 2040, enabled by a robust value chain already involving thousands of businesses.
10+
Operating Tanneries
20+
Leather Goods Mfrs.
~17,000
Direct Industry Jobs
Cost Competitive
Kenya’s production costs rival traditional leather-exporting giants. Offers more competitive costs on both finished leather and men's leather dress shoes than key players such as Vietnam and Brazil.
Wide Market Access
Duty-free access to key markets through free trade agreements.
- EU: Duty-free & quota-free access (July 2024).
- UK: Duty-free & quota-free access (March 2021).
- US: Duty-free access via AGOA (to Sept 2025).
Enabling Infrastructure & Favorable Ecosystem
The leather value chain is a national priority, anchored by the Kenanie Leather Industrial Park. Kenya offers a safe, transparent, and investor-friendly environment.
Where to Invest
Kenya’s leather industry offers high-return opportunities across the value chain, from raw hides and skins and crust leather for exports to finished leather goods and footwear.
Tanneries
Unlock a $100+ million annual revenue opportunity
Investors can set up new or modernize existing tanneries focused on producing crust leather for exports or finished leather for both export and domestic markets.
~20% 10-year IRR
Internal Rate of Return by 2040
Footwear Factories
Step into a $500+ million market
With a projected demand for over 40 million pairs of leather shoes by 2040, Kenya is following an export-oriented and a local footprint strategy.
25% 10-year IRR
Internal Rate of Return
Invest with Confidence
The Government of Kenya is actively shaping a pro-investment environment to support long-term growth through the following levers:
- Increasing the supply of high-quality hides and skins.
- Strengthening processing capabilities and investing in infrastructure like the Kenanie Leather Industrial Park.
- Accelerating leather products manufacture, including negotiating global trade agreements and supporting skills training.
- Supporting compliance with EU Deforestation Regulation (EUDR) and Leather Working Group (LWG) standards.
Kenanie Leather Industrial Park (KLIP)
Your Gateway to Africa’s Leather Opportunity
Just 50 km from Nairobi, KLIP offers investors a world-class, plug-and-play industrial zone tailored to leather processing and manufacturing.
500 Acres
Hosting 36 tanneries, 18 leather goods manufacturers, and more.
Zero Capex on Effluent
State-of-the-art Common Effluent Treatment Plant lowers operational costs.
Ready-to-Go
Stable power, clean water, roads, and warehousing.
Govt. Incentives
10-year corporate tax holiday and duty exemptions.
Incentives that work for You
Kenya presents an attractive investment environment, underpinned by a wide range of fiscal and non-fiscal incentives.
Export Processing Zones (EPZs)
Import and VAT benefits:
- VAT and customs duty exemption
- Stamp duty exemption
Corporate tax benefits:
- 10-year corporate income tax holiday
Additional benefits:
- Single license approval
- Foreign currency accounts permitted
Special Economic Zones (SEZs)
Import and VAT benefits:
- Zero-rated VAT for local supplies
- Full exemption on imports
Favorable tax rates:
- 10% for first 10 years, 15% after
Additional benefits:
- No restriction on sales to EAC
- Discounted electricity tariff
Step into the future of leather with us.
Our team is ready to support you through every step of your investment journey.
Success Stories
ALPHARAMA
Powering Kenya’s Leather Export Engine
As the largest tannery in East Africa, Alpharama is at the heart of Kenya’s thriving leather industry. Main export markets: Europe, China, Uganda.
REDDAMAC LEATHER CENTRE
Leading with Quality and Capacity
A premier leather manufacturing company, producing 4,000 pairs of shoes daily. Main export markets: India, China, Indonesia.
SANDSTORM
Crafting Bags, Creating Impact
A globally recognized brand of premium leather and canvas bags, handmade by skilled Kenyan artisans using ethically sourced materials.
ADELPHI
Setting the Standard for "Made in Kenya"
Kenya's first locally made leather goods brand, setting a standard for quality and collaborating with local communities like Maasai women collectives.