Mudavadi unlocks Ksh.25 Billion Japanese Aid To Spur Kenya’s Vehicle Assembly!
Eugine Wabwile
2 min read
In a landmark move poised to reshape Kenya’s industrial landscape, Japan has pledged Sh22 billion (25 billion Yen) in Samurai Financing to support local vehicle assembly and energy efficiency initiatives.
The announcement was made during the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan, where Prime Cabinet Secretary Dr. Musalia Mudavadi signed a Memorandum of Understanding with Nippon Export and Investment Insurance (NEXI) Chairman and CEO Mr. Atsuo Kuroda.
Mudavadi emphasized that the funding will catalyze Kenya’s National Automotive Policy, which aims to phase out the importation of used vehicles and parts in favor of locally manufactured, energy-efficient alternatives.“This unique Samurai financing facility will stimulate the entire automotive value chain, foster innovation, and create quality jobs,” he said.
The Ministry of Investment, Trade and Industry (MITI) is set to receive Sh13.1 billion (15 billion Yen) to empower local assemblers and parts manufacturers, with a strong focus on electric vehicles and green technology. A technical education component will also be included to equip Kenyans with skills for the emerging green automotive industry.
The Ministry of Energy will benefit from Sh4.8 billion (5.5 billion Yen) to combat electricity transmission and distribution losses, which currently account for nearly a quarter of Kenya’s national output. Funds will be used to install high-efficiency transformers and train engineers to manage the upgraded infrastructure.An additional Sh3.9 billion (4.5 billion Yen) will be allocated to general budgetary support, aimed at reinforcing fiscal stability and freeing resources for national development programs.
A Strategic Partnership for Transformation.
Witnessed by President William Ruto and Japan’s Prime Minister Shigeru Ishiba, the agreement signals a deepening of Kenya-Japan ties and a shared commitment to sustainable development.“This partnership reflects Kenya’s bold strategy to diversify funding sources and unlock new opportunities for our people,” said Dr. Mudavadi.The seven-year Samurai facility marks a shift away from traditional borrowing channels, offering Kenya a flexible and forward-looking financial instrument to drive its Bottom-Up Economic Transformation Agenda.
