Kenya and Toyota Tsusho Corporation of Japan have signed a framework agreement for collaboration in vehicle manufacturing and renewable energy development.
The agreement will see Toyota set up a vehicle manufacturing plant in the country as agreed upon during President William Ruto’s visit to Japan. The company has committed an initial investment of Kshs 800 million in the Kenya Thika vehicle manufacturers.
President William Ruto said the move will bolster Kenya’s industrial sector, strengthen Kenya-Japan ties, and expand opportunities for Kenyans. The goal, he said, is to ensure locally manufactured vehicles are affordable and thus discourage the purchase of used cars.
The move to set up a vehicle manufacturing plant in Kenya is to tap into the growing demand for its products. The president further pointed out that the manufacturing project would reduce the number of used vehicles we continue to import and create jobs for our skilled manpower.
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.
“We must have a balance between the number of imported and newly manufactured vehicles,” adding that “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,” he said.
In Tokyo, Japan, President Ruto witnessed the signing of the agreement in the presence of Toyota Tsusho Corporation of Japan President Ichiro Kashitani. The move by the president is aimed at addressing the challenges faced in the country of unemployment, one he declares a non-problem considering the skills, and expertise that are beheld by the young people in Kenya.
He has promised to deliver on platforms that will enable the unemployed young people to get opportunities to make a living from their skill set with more partnerships and collaborations with firms as they venture into the Kenyan market.
On renewable energy development, the agreement included Sh15 Billion Meru Wind Farm Energy, Sh8 Billion Isiolo Solar Energy, and Sh75 Billion Menengai Geothermal Plant.
It also entailed the promotion of electrified Vehicles including hydrogen electric vehicles and hybrid vehicles.
