The leather value chain development in Kenya will receive KSh5.8 billion to unlock KSh120 billion potential and create 120,000 jobs. Cabinet also adopted a new cotton policy.

Government Endorses KSh5.8 Billion Leather Value Chain Development in Kenya

The government has given the green light to a Sh5.8 billion plan aimed at reviving Kenya’s leather sector. The project is expected to unlock an estimated Sh120 billion in potential, expand value addition, and create up to 120,000 jobs. The decision was reached during a Cabinet meeting at State House.

For decades, Kenya has been sitting on a goldmine of raw materials. The country has millions of livestock that produce hides and skins. But instead of processing them locally, most of these raw materials are exported, with value addition happening elsewhere. Kenya has been losing billions in potential revenue and thousands of jobs.

The new project aims to change that. It will support the entire leather value chain, from livestock production to processing, manufacturing, and marketing. The goal is simple: keep more value in Kenya and create jobs for Kenyans.

The Cabinet also approved the National Cotton, Textile and Apparels Policy. The policy is designed to breathe life back into a sector that has been on life support for years. It aims to revitalise cotton farming, strengthen textile manufacturing, attract private investment, and position Kenya as a more competitive player in regional and global markets.

Cotton farmers have been walking away from their fields for years. Low prices and a lack of reliable buyers made the crop unappealing. The new policy aims to reverse that by providing support to farmers, improving seed quality, and linking them to textile manufacturers.

The two decisions are part of a broader push by the government to build resilient industries, create jobs, and drive inclusive economic growth. The leather and cotton sectors have the potential to absorb many workers, particularly in rural areas where jobs are scarce.

The Sh5.8 billion investment will go into infrastructure, training, and access to finance. It will also help leather producers meet international quality standards, which is key for export markets. Without quality, Kenya’s leather will continue to be rejected abroad.

The leather value chain development in Kenya will also give livestock keepers an additional source of income. Instead of just selling milk and meat, they can also earn from hides and skins. This could help reduce poverty and build resilience against climate shocks.

The cotton policy is expected to benefit farmers in arid and semi-arid areas where cotton thrives. It will also create jobs in textile manufacturing, which has been hammered by cheap imports.

The Cabinet has approved the plans. Now the hard work of implementation begins. The leather value chain development in Kenya and the cotton policy are key pillars of the Bottom-Up Economic Transformation Agenda. The farmers are waiting. The investors are watching. The jobs are waiting to be created. The transformation has begun.

https://farmerstrend.co.ke/wp-content/uploads/2026/06/Government-Endorses-KSh5.8-Billion-Leather-Value-Chain-Development-in-Kenya-1024x682.jpeghttps://farmerstrend.co.ke/wp-content/uploads/2026/06/Government-Endorses-KSh5.8-Billion-Leather-Value-Chain-Development-in-Kenya-150x150.jpegFarmersTrendFarming Newsleather value chain development in KenyaThe leather value chain development in Kenya will receive KSh5.8 billion to unlock KSh120 billion potential and create 120,000 jobs. Cabinet also adopted a new cotton policy.The government has given the green light to a Sh5.8 billion plan aimed at reviving Kenya's leather sector. The project is expected to...New Generation Culture in Agriculture