Nairobi — Kenya has secured a KSh 22 billion financing deal from Japan to establish a state-of-the-art motor vehicle assembly plant, in a boost to the country’s manufacturing ambitions. The funding was announced during a ceremony in Yokohama attended by President William Ruto and Japanese Prime Minister Shigeru Ishiba, where both leaders hailed the partnership as a milestone in Kenya–Japan economic cooperation.

According to officials, the Japanese credit facility will support the construction and equipping of an assembly factory that enables local production of affordable automobiles. President Ruto said the project will create thousands of skilled jobs and advance his administration’s agenda to make Kenya an African manufacturing hub. “We are committed to producing vehicles in Kenya both for our market and for export,” Ruto noted, thanking Japan for the generous support.

Japan’s Prime Minister Ishiba reiterated his country’s commitment to African industrial development, expressing confidence that the investment will foster technology transfer and strengthen bilateral ties. The planned assembly plant aligns with Kenya’s strategy to reduce vehicle imports by building domestic capacity. It comes as Kenya seeks more foreign partnerships, including exploring a “Samurai” bond issuance in Tokyo’s capital markets, to finance its development goals.