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Kenya, Toyota ink Sh98.8bn deal for green energy collaboration

President William Ruto when he witnessed the signing of the Framework Agreement For Collaboration between Kenya and Toyota Tsusho Corporation in Japan on February 7, 2024. (Photo: PCS)

By Foreign Reporter | Wednesday, February 7, 2024

President William Ruto witnessed the signing at the Toyota Tsusho Corporation Headquarters in Japan

Kenya and Toyota Tsusho Corporation of Japan have inked a collaboration framework agreement, focusing on sustainable development and green energy initiatives.

President William Ruto witnessed the signing at the Toyota Tsusho Corporation Headquarters in Japan, alongside Cabinet Secretaries Davis Chirchir (Energy), Kipchumba Murkomen (Transport), and Rebecca Miano (Trade).

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The agreement, as per State House spokesperson Hussein Mohamed, encompasses various ventures to enhance Kenya's green energy landscape.

Key projects set to receive significant support include the Meru Wind Power Project (Sh15 billion), Menengai Geothermal (Sh75 billion), Isiolo Solar Energy Power Project (Sh8 billion) and Thika Kenya Vehicle Manufacturers (Sh 800 million).

The collaboration also aims to promote the adoption of electrified vehicles, particularly Hydrogen Electric Vehicles (HEVs), highlighting the commitment to reducing carbon emissions and fostering sustainable transportation solutions.

Beyond environmental initiatives, the agreement prioritises strengthening Kenya's automotive sector.

By boosting the car assembly industry, the partnership seeks to spur economic growth and create employment opportunities domestically.

Bilateral ties

President Ruto's visit to Japan is part of an official visit aimed at reinforcing bilateral relations between Kenya and Japan, following Prime Minister Fumio Kishida's visit to Kenya in May 2023, marking the 60th anniversary of diplomatic ties between the two nations.

Kenya is one of the leading clean energy countries in Africa, with renewable energy providing approximately 90 per cent of the country’s total electricity generation.

Kenya is rich in geothermal resources, with more than 40 per cent of our total electricity generation coming from geothermal power.

Toyota Tsusho has been involved in expanding geothermal power generation in Africa, including the completion of the Olkaria geothermal power plant, the largest power producer in Kenya.

Other MoUs to be signed during this visit will cover defence cooperation, PPPs on road construction, and the KEMRI laboratory expansion project.

President Ruto is also expected to meet the Japan-Africa parliamentary association to advocate Japanese investments in Kenya, address a Kenya-Japan business forum, meet leaders of Japanese companies and finally hold talks with Emperor Naruhito and Empress Masako.