Kenya secures major deals with Toyota

Kenya and Japan have entered an agreement that promises to be huge for Kenya’s automobile industry. Both countries have inked deals that could generate approximately Sh99 billion in green energy and vehicle manufacturing investments. The deal involves Kenya and the Japanese automobile giant Toyota Tsusho Corporation.

A report by BusinessDaily, a Kenyan business news publication, showed that the President William Ruto disclosed Kenya’s progress so far in partnering with the Toyota company, via X, formerly known as Twitter.

“In Tokyo, Japan witnessed the signing of the Framework Agreement for Collaboration between Kenya and Toyota Tsusho Corporation and later toured the Toyota Motamachi Factory,” the president tweeted last week.

“The pact entails Sh15 billion Meru Wind Farm Energy, Sh8 billion Isiolo Solar Energy, Sh800 million Thika Kenya Vehicle Manufacturers (KVM)’s initial investment, Sh75 billion Menengai Geothermal Plant and Electrified Vehicles promotion,” he also added. In his most recent tweet, the president of Kenya noted that both countries are looking into more deals with other Memorandum of Understanding in the works. 

President Ruto further stated that the Kenyan delegation has been speaking to Toyota about establishing a car manufacturing factory in Kenya to capitalize on the increased demand for its goods, which he claimed were making good development. -Business Insider Africa

“The manufacturing project would reduce the number of used vehicles we continue to import and create jobs for our skilled manpower. I am glad that Toyota Tsusho Corporation finds the project viable. We undertake to provide sufficient incentives to multinational automotive manufacturers to set up in Kenya,” the president said.

According to BusinessDaily’s report, the Meru Wind Farm project is designed to be a 400-megawatt wind farm intended for an 18,700-acre plot of land in Tigania East Sub-County, whereas the solar access program in Isiolo was originally a World Bank-funded project aimed at increasing access to clean energy to over 5 000 households.

Toyota’s investment in KVM was initially signed by Toyota and the Kenyan government during the G7 Session of Trade Ministers in Osaka, Japan, in October 2023, to revamp the local assembly facility, which has been constrained in manufacturing capacity due to financial restrictions. Business Insider Africa