Iran in plans to set up car assemby plant in Mombasa

Kenya and Iran have agreed to exploit strong ties that the two countries enjoy to expand trade.

President William Ruto yesterday said Iran intends to set up a motor vehicle assembly plant in Mombasa to manufacture an indigenous Iranian vehicle that has been given the Swahili name ‘Kifaru’. “His Excellency conveyed to me information that will be good news for stakeholders in our mechanical and automotive sector, including dealers, engineers, technicians and other workers. I am confident that the project is as unstoppable as this name suggests,” said Ruto.

Ruto made the remarks after holding bilateral talks with his Iran counterpart, Ebraham Raisi at State House.

During the meeting, Ruto said they exchanged views and shared ideas about emerging opportunities to improve the balance of trade between our two nations.

He stated that Kenya and Iran are strategically situated to be each other’s key points of entry into their respective regions and the two countries have affirmed joint commitment to capitalise on this unique advantage.

Ruto lauded the existing bilateral cooperation in the promotion of trade, particularly in the export of Kenyan products to Iran.

More specifically, he said he sought the President’s commitment in facilitating the export of more tea, meat and other agricultural products to Iran and, through Iran, to Central Asian countries.

“Stronger collaboration with Iran is important for us in delivering the agriculture value chain of our Bottom Up Economic Transformation Agenda,” Ruto stated.

The trade volumes between the two countries have been on a steady upward trajectory, with Kenya exporting tea worth Sh4 billion ($28.4 million) to Tehran in the first quarter of the year, which is an eight-fold increase from sales for the same period last year.

“Kenya attaches great significance to the Iranian market since it is one of the most valued export destinations for our tea,” he added.

He also said that Kenya is encouraged by the great interest Iran has shown to promote technological and entrepreneurial innovation among Kenyan youth by promoting the incubation of Kenyan start-ups and creative industries through the Iran House of Innovation and Technology.

Digital superhighway

According to Ruto, this is an outstanding intervention that is innovative and directly aligned with Kenya’s national aspirations towards creating a digital superhighway and a robust digital economy as primary pillars of the Bottom-up Economic Transformation Agenda.

As a global innovation powerhouse, Ruto said Iran has made significant progress in the development and deployment of modern technologies in key industries such as agriculture, manufacturing and telecommunications.

“I have invited wider and deeper collaboration in these and other critical sectors in the interest of our shared socio-economic and developmental objectives,” he stated.

On health care, Ruto said Iran is already an important partner in Kenya’s health services sector and maintains two healthcare centres in Nairobi. To actualise the Universal Healthcare objective, Ruto said Kenya continues to invite and learn from the expertise of countries like Iran, which has achieved a great degree of advancement in medicine and modern medical technology.

To align the undeniable opportunities in the blue economy, Ruto called for the need to invest capital and technology to create more jobs at the bottom of the economic pyramid.

In the spirit to further enhance bilateral relations, he said Iran has agreed to boost exploits and pursuits in the blue economy through research and technology, given that Iran is a maritime nation with a strong fishing Industry.

 On its part, Kenya has established a dedicated ministry to exclusively deal with the blue economy.

Ruto also reaffirmed the Government’s commitment to fostering and protecting all investments in the country, both domestic and foreign, through the fair, consistent and effective application of the rule of law.

Also during the meeting, the two Presidents saw the signing of five memoranda of understanding on cooperation in Information, Communication and Technology; Fisheries; Animal Health and Livestock Production and Investment Promotion.

 These memoranda will enhance and deepen bilateral relations for sustainable growth and development between our two countries.