Kenya and Japan have struck a significant agreement poised to boost Kenya’s automobile sector substantially. The deal, involving Kenya and the renowned Japanese automotive giant Toyota Tsusho Corporation, is anticipated to generate approximately Sh99 billion in investments in green energy and vehicle manufacturing.
Reported by BusinessDaily, the Kenyan President, Dr. William Ruto, shared updates on the collaboration with Toyota Tsusho Corporation via social media.
President Ruto revealed that during his visit to Tokyo, Japan, the Framework Agreement for Collaboration between Kenya and Toyota Tsusho Corporation was signed, followed by a tour of the Toyota Motamachi Factory.
The agreement encompasses several key projects, including the Sh15 billion Meru Wind Farm Energy, Sh8 billion Isiolo Solar Energy, Sh800 million initial investment in Thika’s Kenya Vehicle Manufacturers (KVM), Sh75 billion Menengai Geothermal Plant, and initiatives to promote electrified vehicles.
ALSO READ: Chess The Most Affordable Sport To Learn in Kenya
President Ruto expressed optimism about future collaborations, highlighting ongoing discussions for additional Memorandums of Understanding between the two nations.
He emphasized talks with Toyota regarding the establishment of a car manufacturing plant in Kenya to cater to rising demand and reduce dependency on imported used vehicles, thereby creating employment opportunities.
The Meru Wind Farm project aims to develop a 400-megawatt wind farm on an 18,700-acre plot in Tigania East Sub-County, while the Isiolo Solar Energy program, initially funded by the World Bank, seeks to enhance access to clean energy for over 5,000 households.
Toyota’s investment in KVM, initiated during the G7 Session of Trade Ministers in Osaka, Japan, in October 2023, aims to rejuvenate the local assembly facility to overcome previous constraints on manufacturing capacity due to financial limitations.