PRESIDENT RUTO SIGNS KSH22.1 BILLION KENYA-JAPAN DEAL

President William Ruto has signed a Ksh 22.1 billion deal with the Japanese Government. The funds will be allocated to three National priority areas which include the Automotive sector, the energy sector and Kenya's reforms agenda. 
The Samurai bond, will focus on the development of the Automotive sector specifically on the e-mobility as the world edges towards clean and green energy. A total of Ksh13.1 Billion of the finances has been allocated for automotive and spare-parts manufacturers in the country, with dealers who wish to expand their businesses accessing the affordable loans as well as for individual buyers, purchasing zero-mileage vehicles.
 “The Ksh13.1 billion will enhance our manufacturing capacity, build our human working capacity in terms of training and technological transfer and also support industry,” noted President Ruto when he witnessed the signing at statehouse Nairobi.
President Ruto further called on automotive dealers to take advantage of the opportunity to invest in Kenya noting that “For too long, Africa has imported what it can build and exported the jobs that come with it, we are changing that,”  he noted, adding that, “We will not import finished vehicles, we will assemble them here and progressively manufacture them here in Kenya, and by Kenyan workers.” This, he said, is value addition in its truest form.
The President’s remarks were further supported by Prime Cabinet Secretary Musalia Mudavadi who reiterated the importance of good relations with Japan. Mudavadi said the relation had resulted into multiple developments in the country and increased business opportunities for both nations.
On his part, Industrialization, Trade and Investments (MITI) Cabinet Secretary Lee Kinyanjui highlighted the important role the automotive sector plays in the development of other industries noting that, “The automotive industry is not just about vehicles, it supports many other industries such as the textile and leather sectors which provide upholstery for the production of vehicle seats,” adding that, the sector has a huge multiple effect.
CS Kinyanjui further stressed the importance of developing the automotive sector saying “As a country, we must improve the value of our export basket, the fast and surest way is through this Automotive Bill.” He also noted that the funds would go towards equipping young people with training adding that special consideration would also be given to vehicles produced in Kenya to encourage local production.
Mr. Kinyanjui also remarked that the Government would increase procurement of locally produced vehicles in support for the growth of the sector adding that this would also result in the development of the SMEs involved in servicing, repairs and maintenance. This, he noted, was a great step towards the development of the automotive industry in Kenya.
Treasury Cabinet Secretary, CS, John Mbadi was also present during the signing of the loan agreement and the MOU meant to monitor the implementation the project and praised the signing of the loans, stating that the bonds were a more affordable way of sourcing for funds adding that this would allow for better terms of payment, allowing for more development. Here, he noted, the Samurai Bond would also caution the country from foreign exchange risks related to overreliance on one currency.
Also present was Principal Secretary Dr. Juma Mukhwana, who has been spearheading the creation of the Automotive Bill since its inception and collaborated the signing of the loan agreements between Kenya and Japan. Dr. Mukhwana also oversees the implementation committee of the Samurai Bond, which is set to roll out soon.
Isuzu East Africa, Managing Director, Rita Kavashe, also present, emphasized on the need for increased collaboration between the Government and the Automobile Manufacturers, noting that the Samurai Bond was a great opportunity for greater collaboration towards the development of the Automotive Sector. 
The Deputy Ambassador of Japan to Kenya, Mr. Tononobu Horie, further commended the Kenyan Government for its commitment towards development and the long-standing good relations between the two countries, while calling on increased collaboration between both countries.
NEXI Chairman and CEO Atsuo Kuroda, who was also part of the delegation, noted that his company would ensure that they supported the growth and development of the Automotive industry in Kenya through offering technological support where required.