Japan and Kenya are working on a Memorandum of Understanding (MoU) aimed at transforming Kenya into a regional hub for motor vehicle assembly. The announcement was made by Kenya’s Cabinet Secretary for Industry, Trade, and Investments, Salim Mvurya, following discussions with the Japanese Ambassador to Kenya, Okaniwa Ken, and other key stakeholders. The MoU, currently in draft form, is being prepared by the State Department of Industry in collaboration with relevant Japanese authorities.
Fostering Local and International Collaboration
Mvurya emphasized that the proposed MoU is designed to provide ample opportunities for both Japanese car manufacturers and local Kenyan investors. “We want Japanese car makers to assemble their vehicles in our country,” Mvurya stated, highlighting the potential for job creation and the development of the local automotive sector. He added that the MoU would ensure that local investors are actively involved in the value chain, enabling them to benefit from new opportunities in the sector.
The announcement came after a meeting with Japanese investors and key government officials, including Principal Secretaries Abubakar Hassan of the State Department for Investment Promotion and Juma Mukhwana of the State Department of Industry.
The partnership will also include 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,” Mvurya noted. This initiative is expected to strengthen Kenya’s technical capabilities and foster innovation in the industry.
Investment Prospects at the Dongo Kundu SEZ
Among the potential opportunities arising from this collaboration is the establishment of a motor vehicle assembly line by a Japanese firm at the Dongo Kundu Special Economic Zone (SEZ) on Kenya’s coast. The 3,000-acre SEZ has already attracted interest from 97 investors, highlighting its growing significance as a hub for economic activities.
Mvurya also pointed out that Toyota has already announced plans to set up an assembly plant in Thika, while Associated Vehicle Assemblers (AVA) is operational in Mombasa County. AVA, based in Miritini, Mombasa, assembles vehicles for several international brands, showcasing the country’s potential as an automotive assembly center in the region.
Strengthening Bilateral Ties
The Japanese Ambassador to Kenya, Okaniwa Ken, praised the consultations with the Kenyan Cabinet Secretary, noting the fruitful discussions on manufacturing and assembly of cars in Kenya. He extended an invitation to Mvurya to attend an international expo in Osaka in June 2025. “It is an important event, and the CS can use the occasion to promote Kenya as a destination for investment and tourism,” the ambassador remarked.
Ambassador Ken further highlighted the steady increase in the number of Japanese firms operating in Kenya. This growth reflects the strengthening bilateral relations and the expanding economic cooperation between the two countries.
Strategic Steps Toward a Regional Hub
The draft MoU marks a significant step toward achieving Kenya’s ambition of becoming a regional hub for motor vehicle assembly. By fostering collaboration between Japanese car makers and local stakeholders, the agreement aims to boost local manufacturing capabilities, enhance skills development, and create jobs.
Additionally, it will open avenues for local investors to engage in the assembly value chain, contributing to the country’s economic growth. This partnership also aligns with Kenya’s Vision 2030 development blueprint, which identifies manufacturing as a key pillar for economic transformation.
Promoting Economic Growth and Innovation
The ongoing negotiations for the MoU reflect the shared commitment of both nations to deepen their economic ties and explore new areas of cooperation. For Kenya, this presents a chance to strengthen its manufacturing sector, attract foreign direct investment, and build a more resilient economy. For Japan, it offers an opportunity to expand its footprint in the African market and contribute to the continent’s economic development.
With the proposed assembly plant projects and enhanced training programs, Kenya is set to become a key player in the automotive sector in Africa, paving the way for increased innovation, competitiveness, and economic growth. The strategic collaboration between Japan and Kenya is poised to bring about significant benefits for both countries, fostering a robust and dynamic economic partnership in the years to come.
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