Kenya has signed a number of agreements with Japanese firms, including the giant Japan’s Toyota Tsusho Corporation, that could unlock nearly Ksh99 billion ($620.7 million) in investments in green energy and automobile assembly.“In Tokyo, Japan, witnessed the signing of the Framework Agreement for Collaboration between Kenya and Toyota Tsusho Corporation and later toured the Toyota Motamachi Factory,” posted Dr William Ruto on his official X (formerly Twitter) account on Wednesday.“The pact entails Ksh15 billion ($94 million) Meru Wind Farm Energy, Ksh8 billion ($50.2 million) Isiolo Solar Energy, Ksh800 million ($5 million) Thika Kenya Vehicle Manufacturers (KVM)’s initial investment, Ksh75 billion ($470.22 million) Menengai Geothermal Plant and Electrified Vehicles promotion.”Ruto further revealed that the Kenyan delegation was engaging Toyota to consider setting up a vehicle manufacturing plant in Kenya to tap into the growing demand for its products deliberations, which he said, were making positive progress.
Read: Kenya buys 94pc of used vehicles from Japan“The manufacturing project would reduce the number of used vehicles we continue to import and create jobs for our skilled manpower. I am glad that Toyota Tsusho Corporation finds the project viable. We undertake to provide sufficient incentives to multinational automotive manufacturers to set up in Kenya,” wrote Dr Ruto.
The Meru Wind Farm project is an envisioned 400-megawatt wind power set to sit on an 18,700-acre piece of land in Tigania East Sub-County while in Isiolo, the solar access programme was initially a World Bank-funded project that sought to increase access to clean energy to reach over 5,000 households.
On Toyota’s investment in KVM, the deal was first signed between the Japan-based firm and the Kenyan government during the G7 Session of Trade Ministers held in Osaka, Japan in October last year, to revamp the local assembly plant whose financial constraints have limited its production capacity.
The pact was at the time announced by Trade Cabinet Secretary Rebecca Miano who however declined to disclose the nature of Toyota’s proposed investment.
Read: Kenya vehicle dealers export sales in EA increase 39pc“Noting that the Kenya Vehicle Manufacturers, one of the local automotive assembling facilities in Kenya, is experiencing financial difficulties, it was agreed that Toyota Tsusho, as one of the stakeholders in the industry, steps in to save the facility from eminent collapse,” stated Miano last October.
KVM puts together multiple vehicle brands including those from Crown Motors (Nissan), PSA Group (Peugeot), and CMC Motors (Nissan Diesel, Eicher, and MAN).
It also builds bodies for various commercial vehicle brands such as Hyundai, Isuzu, Mitsubishi, Tata, Hino, and Scania among others. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).