Kenya and Toyota Tsusho Corporation of Japan have officially established a framework agreement aimed at fostering collaboration in the domains of vehicle manufacturing and renewable energy development.
As part of this agreement, Toyota intends to establish a vehicle manufacturing plant within Kenya, with an initial investment commitment of KES 800 million to support the Kenya Thika vehicle manufacturing initiative.
President William Ruto emphasized that this collaboration holds the potential to significantly enhance Kenya’s industrial sector, fortify the bilateral relationship between Kenya and Japan, and create new avenues of opportunity for Kenyan citizens.
Central to the objectives outlined by President Ruto is the aim to make locally manufactured vehicles more accessible, thereby discouraging the reliance on imported used cars. He stressed the importance of striking a balance between imported vehicles and those produced domestically.
The signing ceremony, held in Tokyo, Japan, was attended by President Ruto and President of Toyota Tsusho Corporation of Japan Ichiro Kashitani.
Regarding renewable energy development, the agreement encompasses substantial investments, including KES15 billion for the Meru Wind Farm Energy project, Sh8 billion for Isiolo Solar Energy, and Sh75 billion for the Menengai Geothermal Plant.
Furthermore, the agreement includes provisions for promoting electrified vehicles, with a focus on hydrogen electric vehicles and hybrid vehicles.
