Kenya and Japan have signed a new KSh22.1 billion financial facility to accelerate the growth of Kenya's vehicle sector.
In a statement on Monday, June 22, President William Ruto said the partnership marks a significant milestone in the long-standing relationship between the two countries
"Today, Kenya and Japan open a new chapter in a friendship built over decades as we strengthen our strategic partnership through new commitments in financing, investment, and development cooperation, reflected in the agreements we sign today," he said.
Ruto revealed that the Ksh22.1 billion mobilised through the partnership will be directed toward three key national priorities, with the largest share earmarked for the country's automotive industry.
He explained that JPY 15 billion, equivalent to approximately Ksh13.1 billion, will support the implementation of Kenya's National Automotive Policy.
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Ruto said the initiative is designed to boost local vehicle assembly, create jobs, and strengthen Kenya's manufacturing sector.
"First, JPY 15 billion - Ksh13.1 billion - will drive our National Automotive Policy. This is the centrepiece of today's agreement and of our industrial ambition.
"For too long, Africa has imported what it could build and exported the jobs that come with it. We are changing that. We will not simply import finished vehicles; we will assemble them here in Kenya by Kenyan workers," he added.
The second component of the financing package will support energy infrastructure improvements through the Reduction of Energy Losses Programme.
According to Ruto, JPY 5.5 billion, equivalent to about KSh5 billion, has been allocated to the programme to improve electricity reliability and reduce costs.
"Second, JPY 5.5 billion - KSh5 billion - will fund the Reduction of Energy Losses Programme. Reliable, affordable power is the backbone of every factory and every home," he stated.
Ruto noted that reducing technical and commercial power losses will strengthen Kenya's competitiveness as an industrial hub.
"By cutting technical and commercial losses, we lower the cost of energy, steady our grid, and make the Kenyan industry more competitive. Cheaper and cleaner power is the foundation of an industrial economy," he further said.
The third allocation will support ongoing economic reforms and governance programmes.
Ruto stated that JPY 4.5 billion, approximately KSh4 billion, will be directed toward Kenya's reform and development agenda, helping sustain public services and institutional strengthening efforts.
"Third, JPY 4.5 billion (approximately KSh 4 billion) will support Enva's reform and development agenda. This reflects Japan's confidence in the progress we are making and our commitment to responsible economic management.
"This will help reinforce essential public services, protect key social investments, and strengthen the institutions that underpin sustainable growth," he explained.
Ruto said the financing package demonstrates both Japan's confidence in Kenya's future and the government's commitment to prudent management of public resources.
"Together, these three priorities carry a single message: Japan's trust in Kenya's direction, and Kenya's commitment to manage every shilling with discipline, transparency, and accountability," he said.
This comes days after the government signed an agreement with Armenia aimed at strengthening cooperation on diaspora affairs and enhancing engagement with citizens living abroad.
In a statement on Friday, June 19, the State Department for Diaspora Affairs said the Memorandum of Understanding (MoU), signed with Armenia's Office of the High Commissioner for Diaspora Affairs, marks the first such agreement between the two countries in the area of diaspora engagement.
The department said the agreement represents a major step forward in bilateral relations and will create new opportunities for collaboration between the diaspora communities of both nations.
"This first-of-a-kind MoU, signed by Diaspora Affairs Principal Secretary, Roseline Njogu, and Armenia's High Commissioner for Diaspora Affairs, Zareh Sinanyan, marks a significant milestone in strengthening bilateral relations and deepening engagement between Kenya and Armenia through their respective diaspora communities," the statement read.
According to the State Department, the partnership will focus on consultation, cultural exchange, youth engagement, and knowledge-sharing initiatives.
"Under the MoU, the parties will collaborate to enhance diaspora consultation and cooperation; promote shared values abroad; advance joint awareness initiatives; facilitate knowledge exchange; strengthen youth cooperation; and promote cultural heritage initiatives," the statement added.
