President William Ruto has announced plans to slash the importation of used cars following the striking of a new deal in Japan.
The Head of State announced that Kenya has agreed with Toyota Tsusho Corporation to start manufacturing cars in the country.
Ruto who is currently in Japan noted that the deal will spur automotive sector growth and reduce the country's overdependence on used cars.
"We are engaging the Toyota Tsusho Corporation to consider setting a vehicle manufacturing plant in Kenya to tap into the growing demand for its products. The manufacturing project would reduce the number of used vehicles we continue to import and create jobs for our skilled manpower," Ruto stated.
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To fast-track the project, Toyota Tsusho Corporation committed to bankroll the Thika Vehicle plant with Ksh800 million.
The Japanese company also pledged to support President William Ruto's plan to increase electric vehicle uptake in the country.
Moreover, the company announced a bid to fund various projects in the country, in a comprehensive pact.
"The pact entails Ksh15 Billion Meru Wind Farm Energy, Ksh8 Billion Isiolo Solar Energy, Ksh800 Million Thika Kenya Vehicle Manufacturers' initial investment, Ksh75 Billion Menengai Geothermal Plant and Electrified Vehicles promotion," Ruto stated.
Transport Cabinet Secretary Kipchumba Murkomen and his Treasury counterpart Njuguna Ndung'u witnessed the signing of the agreements among other delegates who accompanied the President to Japan.
At the moment, almost 80 per cent of Kenya's vehicles are imported from different countries including Japan. Most of the cars are used before being imported by different car dealers.
However, Ruto's plan will render some car dealers jobless but at the same time give Kenyans an opportunity to buy brand new cars at affordable rates.
