Kenya and Japan have signed a Ksh22.1 billion financial facility aimed at accelerating growth in the country’s automotive industry and strengthening local vehicle manufacturing capacity.

The agreement was signed with Japan’s Nippon Export and Investment Insurance (NEXI) and witnessed by President William Ruto at State House, Nairobi, on Monday, June 22, 2026. NEXI Chief Executive Officer Atsuo Kuroda signed the deal on behalf of Japan.

President Ruto said the facility marks a key milestone in expanding industrial capacity through international partnerships, noting that it will support the production of more locally manufactured vehicles.

He said the agreement reflects ongoing efforts to diversify financing sources and strengthen partnerships built on mutual respect and shared economic interests.

“Kenya and Japan have signed a new Ksh22.1 billion financial facility to accelerate the growth of Kenya’s vehicle sector with the support of Japan’s Nippon Export and Investment Insurance (NEXI),” read the X post in part.

Link to Japan state visit and TICAD engagements

The financial arrangement follows Kenya’s State Visit to Japan in 2024 and participation in the Tokyo International Conference on African Development (TICAD) in 2025.

According to the government, the engagements laid the groundwork for expanded cooperation in infrastructure, industrial development, and trade between the two countries.

Kenya and Japan have maintained diplomatic and economic relations since independence, with collaboration extending across multiple sectors including transport, energy, agriculture, and technology.

Over 120 Japanese companies are currently operating in Kenya, with ongoing discussions to expand private sector participation through partnerships and investment frameworks.

Industrialisation and automotive sector growth

The facility is expected to support expansion of local vehicle assembly and manufacturing capacity, including development of supporting industries such as component production.

The initiative aligns with Kenya’s broader industrialisation agenda and efforts to promote technology transfer, skills development, and job creation within the manufacturing sector.

Government officials say the programme will also support diversification in mobility solutions, including electric vehicle technologies, as part of wider transport modernisation efforts.

Earlier discussions between Kenyan and Japanese officials in 2026 focused on infrastructure development, concessional financing, electric mobility, and cooperation in health and technology transfer.

Prime Cabinet Secretary Musalia Mudavadi previously noted that bilateral cooperation between the two countries spans infrastructure, energy, ICT, agriculture, health, and education sectors.

The latest agreement adds to existing cooperation frameworks supported by Japanese institutions, including the Japan International Cooperation Agency (JICA), and is expected to deepen industrial and economic ties between the two countries.