In a major milestone for funding Kenya’s transition to electric mobility, the National Treasury and Japan’s Nippon Export and Investment Insurance (NEXI) have inked a $500 million Samurai Bond agreement.
Signed in Tokyo on Wednesday by Treasury PS Dr Chris Kiptoo and NEXI CEO Atsuo Kuroda, the landmark financing deal will see Kenya issue a two-tranche Samurai bond worth $250 million each. The capital raised will finance electric vehicle initiatives and improve energy efficiency in Kenya’s electricity transmission network.
Arranged with the Japan Bank for International Cooperation, the bond offers Kenya rare access to Japanese investors at rock-bottom rates.
A Samurai bond is a yen-denominated bond issued in Japan by a non-Japanese entity and subject to Japanese regulations.
With transport accounting for over 70% of urban emissions, policymakers are betting big on electric mobility to cut carbon and clean Nairobi’s air. This Samurai Bond agreement could prove a key catalyst in accelerating EV uptake while modernising Kenya’s aging power grid.
