Toyota Tsusho Corporation of Japan has agreed to establish a vehicle manufacturing plant in Kenya.
President William Ruto announced the signing of the deal in Tokyo.
Toyota has pledged an initial investment of 800 million Kenyan shillings (equivalent to $4.9 million) in Kenya Vehicle Manufacturers (KVM), a car manufacturer located in Thika, approximately 25 miles northeast of Nairobi.
According to Ruto, this initiative is expected to reduce the import of secondhand cars by providing more affordable, locally-produced vehicles.
“We must have a balance between the number of imported and newly manufactured vehicles,” he said.
In 2023, Toyota Tsusho announced the commencement of Semi Knocked Down (SKD) production of Toyota Motor Corporation’s (Toyota) Fortuner SUV at Associated Vehicle Assemblers Limited’s (AVA) Mombasa plant.
Additionally, the agreement includes Toyota’s investment in the development of renewable energy in Kenya.
The agreement included Sh15 billion in Meru wind farm energy, Sh8 billion in Isiolo solar energy, and Sh75 billion in Menengai geothermal plants.
President Ruto witnessed the signing of the agreement in the presence of Toyota Tsusho Corporation of Japan President Ichiro Kashitani, in Tokyo.