Kenya and Japan’s Toyota Tsusho Corporation have inked a framework agreement to collaborate on vehicle manufacturing and renewable energy development.
Under the agreement, Toyota will establish a vehicle manufacturing plant in Kenya, with an initial investment of Ksh800 million in the Kenya Thika vehicle manufacturers.
Kenya’s President William Ruto expressed optimism that this collaboration will fortify Kenya’s industrial sector, foster stronger Kenya-Japan ties, and create expanded opportunities for the country’s residents.
Dr Ruto highlighted the objective of making locally manufactured vehicles more affordable, aiming to dissuade the purchase of used cars and strike a balance between imported and newly manufactured vehicles.
The signing ceremony took place in Tokyo, Japan, with President Ruto present alongside Toyota Tsusho Corporation’s President Ichiro Kashitani.
In addition to vehicle manufacturing, the agreement encompasses renewable energy development projects, including the Sh15 billion Meru Wind Farm Energy, Sh8 billion Isiolo Solar Energy, and Sh75 billion Menengai Geothermal Plant.
Furthermore, the collaboration will promote electrified vehicles, including hydrogen electric vehicles and hybrid vehicles.