Kenya: Kenya has signed a deal with Toyota company. The car manufacturing company hails from Japan. Both countries have come to an agreement that promises to be huge for Kenya’s Automobile industry.
Kenya and Japan have sealed the deal which will generate Sh99 billion in green energy and vehicle manufacturing investments. The deal involves Kenya and the Japanese automobile Toyota Tsusho Corporation.
President Ruto announced the collaboration with Toyota Tsusho Corporation via ‘X’ (formerly known as twitter). The Kenyan delegations have explored opportunities with Toyota with an aim to establish a car manufacturing factory.
The President of Kenya, Dr William Ruto, revealed Kenya’s progress in partnership with the Toyota company through ‘X’ and tweeted, “In Tokyo, Japan witnessed the signing of the Framework Agreement for Collaboration between Kenya and Toyota Tsusho Corporation. The president, later on toured the Toyota Motamachi Factory.”
Due to the deal closed between Kenya and Japan, much capital in billions have been granted to their upcoming partnership projects.
Mentioning more about the partnership, President Ruto wrote, “The pact entails Sh15 billion Meru Wind Farm energy, Sh8 billion Isiolo Solar Energy, Sh800 million Thika Kenya Vehicle Manufacturers (KVM) initial investment, Sh75 billion Menengai Geothermal Plant and Electrified Vehicles promotion.”
The President of Kenya, in his most recent tweet, wrote that both countries are looking into more deals with other Memorandum of Understanding in the works.
President Ruto tweeted, “In Tokyo, Japan, held bilateral talks with Prime Minister Fumio Kishida and witnessed the signing of MoUs in the ICT, enhancement of KEMRI’s capacity to build on its pandemic management and the issuance of the Samurai bond to support our infrastructure development.”
The President of Kenya has also stated that the Kenyan delegation has been in conversation with Toyota regarding the establishment of a car manufacturing factory in Kenya to capitalize on the increased demand for its goods, which were claimed to be making good development.
The president said that the manufacturing project would reduce the number of used vehicles they continue to import and create jobs for the skilled manpower.
“I am glad and optimistic that Toyota Tsusho Corporation finds the project viable. We undertake to provide sufficient incentives to multinational automotive manufacturers to set up in Kenya,” said President Ruto.
Notably, Toyota’s investment in KVM was initially signed by Toyota and the Kenyan government during the G7 session of Trade Ministers in Osaka, Japan. The investment was initiated in Oct 2023 to revamp the local assembly facility, which was introduced in manufacturing capacity due to financial restrictions.