Kenya has secured Sh22 billion in financing from Japan to support the automotive and energy sectors, marking a significant step in the country’s resource mobilisation strategy. President William Ruto confirmed the development on Thursday, August 21, during the ongoing Tokyo International Conference on African Development (TICAD) in Yokohama, Japan.
In his statement, President Ruto noted that the government, through the National Treasury, signed a Statement of Intent on a Samurai Bond with Nippon Export and Investment Insurance (NEXI). A Samurai Bond is a financial instrument issued by foreign entities in Japan’s capital markets, enabling Kenya to tap into Japanese investors for funding.
“This financing is critical in diversifying our resource mobilisation for national development. It will accelerate industrialisation, support our vehicle assembly industry, and enhance energy connectivity across the country,” Ruto said.
Prime Cabinet Secretary Musalia Mudavadi, who witnessed the signing, underscored the strategic importance of the loan. He explained that the proceeds would be instrumental in strengthening Kenya’s local vehicle assembly and manufacturing industries, while also advancing electricity connectivity and efficiency.
“The loan will stimulate industrial growth, create quality jobs, and spur innovation in the automotive sector, including the development of electric vehicles,” Mudavadi stated. He further added that improved energy efficiency would reduce the cost of power and free up fiscal space for other development priorities.
Beyond industrial and energy development, the agreement also strengthens Kenya-Japan diplomatic ties, which have remained cordial over the years. Mudavadi described the financing as a milestone in deepening bilateral cooperation between the two nations.
Separately, the Ministry of Health signed a Memorandum of Understanding with Shionogi & Co. Ltd, a Japanese pharmaceutical company. The agreement will enable Kenya to access Cefiderocol, an antibiotic approved for the treatment of bacterial pneumonia. According to President Ruto, this collaboration will enhance Kenya’s ability to combat infectious diseases while improving access to innovative healthcare solutions.
The Sh22 billion financing, coupled with the health partnership, reflects Kenya’s commitment to strengthening its industrial base, expanding clean energy access, and improving healthcare delivery through strategic international cooperation.
