Note: You MUST have gloves with you for Kaleb to enchant!
To find Kaleb, leave the Shilo bank, head west, over the bridge then east again. He's not in the building with the quest marker, but just northeast of there. He is on the 1st2nd floor[U.K. floor] of the building, up the ladder.
Alternatively, with 77 agility, you can use the agility shortcut, and climb the ladder on the building north.