Kenya is poised to receive a boost in foreign direct investment (FDI) from Asian country, Japan and Porland
This FDI deal followed a meetings between Kenyan President William Ruto and Japanese and Polish officials in Tokyo and Nairobi.
The Kenyan Government signed a framework agreement with Toyota Tsusho Corporation, Toyota’s trading arm, to collaborate on renewable energy projects and vehicle manufacturing.
Here are the key points from the deal:
Investment Details:
Toyota Tsusho Corporation will invest a total of $467.3 million (Ksh.75 billion) in Kenya.
Menegai geothermal plant: $467.3 million investment.
Meru County wind farm: Additional $93.5 million investment for an 80MW onshore wind power project.
Toyota will also establish a vehicle manufacturing plant in Kenya with an initial investment of $4.98 million in Kenya Thika.
Also Read: Ruto rushes to address Ksh.10bn worth of projects Kenya could lose for locking out japan
Local Manufacturing Focus:
President Ruto emphasized the goal of ensuring affordable locally manufactured vehicles to discourage reliance on used cars.
Striving for a balance between imported and newly manufactured vehicles is a priority.
Economic Dialogue:
The economic dialogue took place at a hotel in Kenya’s capital.
Poland’s President Andrzej Duda attended and stressed the importance of showcasing the attractiveness of business opportunities in Kenya to the Polish people.
Special Economic Zones:
Kenya approved the Special Economic Zone Act in 2015.
The act aims to create several special economic zones, attracting both local and global investors. Currently, five such zones are being established across the country123.
