Equity Bank has positioned itself at the centre of a significant bilateral effort between Kenya and Italy aimed at reviving Kenya’s leather and tanning industry, with the bank offering financing and strategic backing to Italian investors seeking to collaborate with local enterprises.

The initiative seeks to unlock untapped potential in a sector that has seen over five million animal skins wasted annually.

This new initiative was unveiled during a stakeholder meeting at the Equity Centre in Nairobi.

Speaking on the importance of the collaboration to Kenya-Italy trade relations, the Italian Ambassador to Kenya Roberto Natali described the occasion as historic for the two nations.

“With me here is a delegation of leather industry experts and players from Italy, ready to explore ways to build capacity, establish more tanneries and help develop and maintain an efficient leather supply chain in East and Central Africa. These efforts are aimed at adding value to the over five million animal skins that go to waste yearly in Kenya,” Natali said.

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The ambassador also highlighted the unique opportunity Kenya holds in the global leather industry, given its natural resources and growing industrial base.

“Kenya, with its abundant livestock and growing industrial base, is uniquely positioned to become a key player in the global leather market,” he said.

Government representatives expressed optimism that the collaboration would stimulate job creation, especially among young people.

Explaining the government’s strategy to support the leather sector, Kenya Leather Development Council CEO, Dr. Isaack Noor, pointed to ongoing infrastructure projects.

“We are developing infrastructure such as the Kenanie Leather Industrial Park in Machakos County to support smallholder farmers and facilitate aggregation. Our goal is to ensure an enabling environment for large-scale investment,” Noor said.

On the financial front, Equity Group underscored its commitment to accelerating the leather industry’s growth through its Africa Recovery and Resilience Plan.

Detailing the bank’s approach, Brent Malahay, Equity Group’s Chief Strategy Officer, noted the untapped potential of the sector.

“Equity is committed to supporting key value chains, and leather is a major subsector with untapped opportunity. With a strong ecosystem of tanneries, slaughterhouses, and microenterprises already in place, we are well-positioned to catalyse growth in this sector,” Malahay said.

Italian industry bodies — including UNPAC, UNIC, ICEC and ASSOMAC — voiced their support for the partnership.

The Italian delegation also conducted visits to local farms and processing facilities such as Farmers Choice Ltd, Reddamac Leather Centre Ltd, Ikwetta Ltd, and Alpharama Ltd to gain deeper insight into Kenya’s leather industry.

The collaboration is expected to stimulate industrial development, enhance value addition, and generate jobs, offering a fresh boost to Kenya’s position in the regional and global leather markets.