Source: Africa Publicity
Kenya and Japan have signed a new KSh22.1 billion financial facility aimed at accelerating the growth of Kenya’s vehicle manufacturing sector, marking a significant step in strengthening economic cooperation between the two countries.
President William Ruto announced the agreement on Monday following the signing ceremony at State House Nairobi, where he witnessed the formalization of the deal between the Government of Kenya and Japan’s Nippon Export and Investment Insurance (NEXI).
The agreement was signed with NEXI, represented by its Chief Executive Officer, Atsuo Kuroda.
According to President Ruto, the financial facility is a direct outcome of Kenya’s growing engagement with Japan, including his State Visit to Japan in 2024 and Kenya’s participation in the Tokyo International Conference on African Development (TICAD) in 2025.
The funding is expected to support the expansion of Kenya’s local vehicle manufacturing capacity by leveraging Japanese capital, technology, and industrial expertise. The initiative aims to increase the production of Kenyan-made vehicles and strengthen the country’s automotive sector.
Ruto said the agreement reflects Kenya’s broader strategy of diversifying its sources of financing while pursuing partnerships based on mutual respect and shared economic benefits.
“As we continue to diversify our sources of financing, we remain committed to building partnerships with nations that engage with us as equals, founded on mutual respect and shared prosperity,” the President said.
The deal is expected to enhance industrial development, create employment opportunities, and promote technology transfer within Kenya’s manufacturing sector.
Government officials view the partnership as a key component of efforts to increase local value addition and reduce reliance on imported vehicles.
The latest agreement further underscores the deepening economic ties between Kenya and Japan, with both countries seeking to expand cooperation in trade, investment, infrastructure, and industrial development.
