NAIROBI, Kenya – Kenya has secured a JPY 25 billion (Sh22.1 billion) financing package from Japan aimed at supporting vehicle assembly, reducing energy losses and advancing key economic reforms.
President William Ruto witnessed the signing of the Samurai Facility Agreement and a Memorandum of Understanding at State House, Nairobi, describing the deal as a significant milestone in the long-standing partnership between Kenya and Japan.
Speaking during the ceremony, Ruto said the financing would help accelerate Kenya’s industrialisation agenda while strengthening the country’s energy infrastructure and development programmes.
“Today, Kenya and Japan open a new chapter in a friendship built over decades as we strengthen our strategic partnership through new commitments in financing, investment and development cooperation,” he said.
The largest share of the financing, JPY 15 billion (Sh13.1 billion), will be directed towards implementing Kenya’s National Automotive Policy.
According to the President, the investment is intended to grow local vehicle assembly, create jobs and reduce the country’s dependence on imported vehicles.
“For too long, Africa has imported what it could build. We will not simply import finished vehicles; we will assemble them here in Kenya by Kenyan workers,” Ruto said.
He argued that expanding local manufacturing would help address Kenya’s trade imbalance with key partners by increasing value addition and creating employment opportunities.
Ruto cited South Africa as an example, noting that Kenya exports about Sh6 billion worth of goods to the country annually while importing nearly KSh65 billion in return, largely consisting of manufactured products such as vehicles, machinery and industrial goods.
The financing package also includes JPY 5.5 billion (Sh5 billion) for a programme aimed at reducing energy losses within the electricity distribution system.
The government says the initiative will improve the reliability of power supply, lower operational costs and enhance the competitiveness of Kenyan industries.
Another JPY 4.5 billion (approximately Sh4 billion) will support Kenya’s broader reform and development agenda, including the delivery of public services and strengthening key institutions.
Ruto said the agreement demonstrates Japan’s confidence in Kenya’s economic direction and commitment to fiscal discipline.
The President praised Japan’s role in supporting Kenya’s development over the years, citing projects such as the expansion of the Port of Mombasa and the Olkaria Geothermal Programme.
He noted that beyond infrastructure financing, Japan has contributed significantly through technical training, technology transfer and capacity building for Kenyan professionals.
Ruto pledged that the funds would be managed transparently and used for their intended purposes, adding that Kenya would continue deepening cooperation with Japan in areas including technology, climate resilience, infrastructure and industrial development.
The agreement comes as Kenya seeks to diversify its sources of financing and attract strategic investments that support manufacturing, job creation and long-term economic growth.
