The Government of Kenya is fortifying its partnership with Japan, through the Japan International Cooperation Agency (JICA), to create a conducive environment for businesses and investments at the Dongo Kundu Special Economic Zone (SEZ). Cabinet Secretary for Investments, Trade, and Industry, H.E. Salim Mvurya, has announced Japan’s commitment to enhancing internal infrastructure around the SEZ, particularly focusing on water and road networks.
“The compensation element had stalled the implementation of several components at the SEZ, but we have resolved that,” said CS Mvurya. He further highlighted that two Japanese investors in the automobile sector and one in the fish processing industry are among the businesses setting up operations at the SEZ.
The Kenyan government is also eager to expedite the partnership agreement between the Kenya Industrial Research and Development Institute (KIRDI) and Japan, aimed at strengthening the capacity of local manufacturers, particularly in the automobile sector. The proposed KIRDI-Japan Memorandum of Understanding (MOU) is expected to empower local manufacturers to venture into the assembly business. “We want to accelerate the signing of the MOU to make Kenya a hub for the automobile value chain, enabling us to domicile the business locally on a large scale. This will attract Japanese investors to set up assembly warehouses for export in Kenya,” CS Mvurya stated.
The partnership will also enable Japanese investors to collaborate with KIRDI to train local manufacturers in the sector. “Already, Toyota, Isuzu, and AVA have set up operations in Mombasa and Nairobi,” noted the CS. Additionally, the Japanese government has extended 15 sponsorships in the technology and AI sectors to support capacity building and innovation in Kenya.
Japanese Ambassador to Kenya, H.E. Ken Okaniwa, acknowledged the growing presence of Japanese companies in Kenya and commended the country’s efforts to improve its business climate. “In the last six years, 120 Japanese companies have set up operations in Kenya, contributing significantly to the economy and creating job opportunities,” Ambassador Okaniwa stated.
CS Mvurya was accompanied by Industry Principal Secretary Dr. John Mukwana, Investment and Promotion Principal Secretary Abubakar Hassan, and other key stakeholders during the announcement.
About the Author
