Japan, Kenya working on a motor vehicle assembly MoU

 

Japanese Ambassador in Kenya Okaniwa Ken and Investments, Trade, and Industry Cabinet Secretary Salim Mvurya

Japan and Kenya are working on a Memorandum of Understanding to make the country a regional hub for motor vehicle assembly, Cabinet Secretary Salim Mvurya has announced.

Mvurya said the MoU is still in the draft state and is being prepared by the State Department of Industry and the relevant Japanese authorities.

“We want Japanese car makers to assemble their vehicles in our country,” the CS stated.

He added that the MoU will ensure local investors are also given the opportunity to be part of the value chain.

Mvurya made the announcement on Wednesday after holding a meeting with Japanese Ambassador in Kenya Okaniwa Ken and investors for the Asian nation.

Also present were Principal Secretaries Abubakar Hassan (State Department for Investment Promotion) and Juma Mukhwana (State Department of Industry).

The CS added that the MoU will provide opportunities for collaborations between Japanese investors and the Kenya Industrial Research and Development Institute (KIRDI).

“Japanese investors will work with KIRDI to train local entrepreneurs wishing to engage in motor vehicle assembly,” he added.

He added that a Japanese firm has also expressed interest in setting up a motor vehicle assembly line at the Dongo Kundu Special Economic Zone (SEZ) at the coast.

A total of 97 investors have so far expressed interest in setting up operations within the 3,000-acre SEZ.

Mvurya noted that Toyota has already announced plans to set up an assembly plant in Thika while Associated Vehicle Assemblers (AVA) is already operational in Mombasa County.

Associated Vehicle Assemblers Ltd. is a company based out of Miritini in Mombasa and assembles vehicles for multiple international brands.

The Japanese ambassador to Kenya said he had fruitful consultations with the CS on the manufacturing and assembly of cars in Kenya.

“I have invited the CS to Osaka in June 2025 for an international expo. It is an important event and the CS can use the occasion to promote Kenya as a destination for investment and tourism,” Ken said.

He noted that the number of Japanese firms operating in Kenya has been steadily rising.

by ALLAN KISIA