Japanese motor vehicle manufacturer Toyota Tsusho Corporation has announced plans to set up a vehicle manufacturing plant in Kenya, marking a significant step towards boosting the country’s industrial sector. The decision follows the signing of a framework agreement between Kenya and Toyota for collaboration in vehicle manufacturing and renewable energy development on Wednesday, February 7, 2024.
According to a statement from State House Kenya, Toyota Tsusho Corporation has committed an initial investment of Ksh 800 million in the Kenya Thika vehicle manufacturers. President William Ruto, currently on a state visit to Japan, hailed the move as one that would not only strengthen Kenya’s industrial sector but also deepen ties between Kenya and Japan while expanding opportunities for Kenyans.
“We must have a balance between the number of imported and newly manufactured vehicles,” President Ruto emphasized, highlighting the importance of promoting locally manufactured vehicles to make them more affordable and discourage the purchase of used cars.
The signing ceremony took place in Tokyo, Japan, where President Ruto witnessed the agreement being formalized in the presence of Toyota Tsusho Corporation President Ichiro Kashitani.
In addition to the vehicle manufacturing initiative, the collaboration agreement between Kenya and Toyota Tsusho Corporation includes significant investments in renewable energy projects. Kenya has secured a Ksh15 billion deal with Japan for the Meru Wind Farm Energy, Ksh8 billion for the Isiolo Solar Energy project, and Ksh75 billion for the Menengai Geothermal Plant.
State House further stated that the agreement encompasses the promotion of electrified vehicles, including hydrogen electric vehicles and hybrid vehicles, as part of the efforts to foster sustainable transportation solutions and reduce the country’s carbon footprint.
The establishment of the vehicle manufacturing plant and investment in renewable energy are expected to create jobs, transfer technological know-how, and contribute to the growth of Kenya’s automotive and energy sectors. This groundbreaking partnership positions Kenya as a regional hub for manufacturing and innovation, paving the way for transformative developments in both industries.
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