BUSINESS

KCB Signs Two Strategic Deals to Boost Kenya’s Leather Value Chain

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KCB Group has signed two strategic Memoranda of Understanding (MOUs) aimed at transforming Kenya’s leather sector by strengthening the value chain from livestock farmers to finished leather products.

Strengthening the Leather Ecosystem

The first partnership, signed with the Kenya Leather Development Council, focuses on enhancing the broader leather ecosystem through coordinated investment, capacity building, and improved sector linkages.

The collaboration seeks to address structural challenges in the industry by enabling access to financing, expanding market opportunities, and supporting infrastructure development necessary for scaling production.

KCB Signs Two Strategic Deals to Boost Kenya’s Leather Value Chain

KCB noted that the partnership will play a key role in improving efficiency across the value chain while empowering stakeholders with the tools and resources needed to grow sustainably.

Scaling Processing and Industrial Capacity

In a second agreement, KCB partnered with Alpharama Limited and Ranch Experts to strengthen processing capacity and create a more integrated, end-to-end leather value chain.

This partnership is expected to connect producers directly to manufacturers and global markets, while facilitating financing solutions to support industrial expansion and enterprise growth within the sector.

By focusing on value addition and structured supply chains, the initiative aims to position Kenya as a competitive player in the global leather industry.

Addressing Long-Standing Industry Gaps

The agreements come at a time when Kenya’s leather sector continues to face challenges including fragmented supply chains, low value addition, and limited market access.

KCB says the dual partnerships are designed to tackle these issues by creating a more coordinated and efficient system that benefits all players in the ecosystem.

Farmers Set to Benefit

For farmers, the initiatives promise more predictable demand for hides and skins, improved pricing, and stronger integration into formal markets.

The bank emphasized that aligning all stakeholders, from producers to processors and exporters, will be key to unlocking the sector’s full economic potential.

Driving Inclusive Growth

KCB underscored that the partnerships reflect a broader strategy to support key agricultural value chains and drive inclusive economic growth.

“Progress works best when the whole value chain moves as one,” the bank said, highlighting the importance of collaboration in building a resilient and competitive leather industry.

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