Kenya Seeks More Locally Made Vehicles Under New Japan Deal

June 23, 2026
By Mintesinot Nigussie

Kenya has signed a KSh22.1 billion financial facility with Japan's Nippon Export and Investment Insurance (NEXI) to support the expansion of the country's vehicle manufacturing industry, President William Ruto said.

The agreement, signed at State House Nairobi, is expected to help Kenya increase domestic vehicle production by drawing on Japanese financing, technology and industrial expertise.

Ruto said the facility was one of the outcomes of his state visit to Japan in 2024 and Kenya's participation in the Tokyo International Conference on African Development (TICAD) in 2025.

The deal was signed between the Kenyan government and NEXI, Japan's export credit agency, represented by its chief executive, Atsuo Kuroda.

According to Ruto, the financing will be used to accelerate growth in Kenya's automotive sector and strengthen local manufacturing capacity as the country seeks to place more locally assembled vehicles on its roads.

"Kenya will harness Japan's capital, technology, and decades of industrial excellence to expand our local vehicle manufacturing capacity, placing more Kenyan-made cars on our roads," Ruto said in a statement.

The agreement forms part of Kenya's efforts to diversify sources of financing for strategic sectors while deepening economic cooperation with international partners.

Ruto said Kenya would continue pursuing partnerships based on mutual benefit and shared economic interests.

The financing arrangement comes as Kenya seeks to expand its manufacturing base, increase local value addition and reduce dependence on imported vehicles through the development of domestic automotive production.

Source: FSX Business News