Kenya has secured a Ksh22 billion Samurai loan facility from Japan to strengthen industrial growth and cut electricity costs.
The financing deal was signed on the sidelines of the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, witnessed by President William Ruto and Japanese Prime Minister Shigeru Ishiba. Prime Cabinet Secretary Musalia Mudavadi signed on behalf of Kenya, while Nippon Export and Investment Insurance (NEXI) CEO Atsuo Kuroda represented Japan.
“This unique Samurai financing facility will promote our transformative program to stimulate the entire automotive value chain, foster linkages with other sectors, and promote innovation, research and development,” said Mudavadi.
The facility will channel Ksh13.1 billion to the Ministry of Investment, Trade and Industry to support local vehicle assemblers, scale up electric vehicle production, and train youth for green automotive jobs. Another Sh4.8 billion will go to the Ministry of Energy for high-efficiency transformers to cut system losses and reduce power bills, while Ksh3.9 billion will support general government expenditure.
Mudavadi emphasized that the facility demonstrates Kenya’s shift towards diversified, non-traditional borrowing while advancing the Bottom-Up Economic Transformation Agenda (BETA).
President Ruto used the TICAD platform to criticize international credit rating agencies, saying Africa suffers from unfair assessments that inflate borrowing costs. He renewed calls for an Africa Credit Rating Agency, arguing such reforms are vital to unlock affordable and sustainable development financing.
Ruto also urged African leaders to expand intra-continental trade, citing UNCTAD data showing that only 18 per cent of Africa’s exports are traded within the continent, compared to over 60 per cent in Europe and Asia.
The Samurai loan has a seven-year repayment period, with Kenya’s National Treasury set to formalize credit access with NEXI.
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