TUKO.co.ke journalist Wycliffe Musalia has over six years of experience in financial, business, technology, and climate reporting, which offers deep insights into Kenyan and global economic trends.

Farmers and traders dealing in the leather industry will receive financial and market support from Equity Bank Kenya.

The bank has announced plans to start supporting the industry and position Kenya as a leader in the continental and global leather market.

Speaking during a roundtable with industry stakeholders at Equity Centre, Nairobi on Monday, March 3, Equity Group MD James Mwangi said the lender will support the farmers and traders through various initiatives.

“With the policy framework now in place, we are prepared to play our catalytic role in making leather industry players competitive, not just in Africa but globally. Equity has set up mechanisms, including a German Desk, to help farmers and traders access European markets. We are also collaborating with embassies to unlock new markets,” said Mwangi.

Mwangi invited industry players to collaborate with Equity in establishing sustainable and high-quality leather production, creating investments and jobs.

The roundtable discussion was dubbed Enhancing Opportunities and Strengthening the Leather Value Chain in Kenya.

The event was organized by Equity in collaboration with the Kenya Investment Authority (KenInvest) under the Ministry of Investments, Trade, and Industry (MITI).

This roundtable discussion follows a cooperation agreement between Equity and KenInvest, focused on revitalizing Kenya’s investment landscape, with an emphasis on key sectors, starting with the leather industry.

Principal Secretary (PS) State Department of Industry Dr Juma Mukhwana emphasised that private sector involvement is key to unlocking the leather sector's full potential.

“Equity’s leadership in financing sector players is a significant boost. As a government, we applaud the bank for its support, which will play a crucial role in job creation and transforming the industry,” said Mukhwana.

State Department for Livestock Development PS Jonathan Mueke noted that the government has created an enabling environment with the necessary policies and incentives to support private investors in key industries.

"Equity’s involvement as a private sector financial catalyst will help commercialize the leather industry, thereby transforming lives,” said PS Mueke.

KenInvest CEO John Mwendwa explained that discussion outcomes will help inform a global pitch on the leather industry for the benefit of farmers, traders, and other stakeholders.

The Kenya Association of Manufacturers (KAM) and the Kenya Private Sector Alliance (KEPSA) said that Kenya’s leather industry has immense potential to drive economic growth and position the country as a continental and global leader in leather production.

This comes a year after President William Ruto announced plans to ban the importation of leather shoes with the aim of supporting local manufacturers.

Ruto assured local farmers that their cowhide would be a significant raw material for local traders and manufacturers.

He revealed that the government allocated KSh 2 billion for the treatment of cowskin to be used in local shoe manufacturing.

Source: TUKO.co.ke