By Alloys Musyoka
The Government of Kenya is strengthening its partnership with Japan through the Japan International Cooperation Agency (JICA) to establish an enabling environment for businesses and investments at the Dongo Kundu Special Economic Zone (SEZ).
Cabinet Secretary for Investments, Trade, and Industry, Salim Mvurya, announced that the Japanese Government is committed to increasing investments in the internal infrastructure, specifically water and road networks, around the SEZ.
“The compensation element had stalled the implementation of several components at the SEZ, but we have resolved that,” said CS Mvurya.
He said that two Japanese investors in the automobile sector and one in the fish processing sector are among several investors setting up operations at the SEZ.
The Kenyan government is also keen on accelerating the partnership agreement between the Kenya Industrial Research and Development Institute (KIRDI) and Japan to strengthen the capacity of local manufacturers, particularly in the automobile sector.
The proposed KIRDI-Japan MOU will empower local manufacturers to venture into the assembling business.
“We want to accelerate the signing of the MOU to make Kenya a hub of the automobile value chain, enabling us to domicile the business locally on a large scale.
This will attract Japanese investors to set up assembling warehouses for export in Kenya,” Mvurya stated.
The partnership agreement will further allow 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, Ken Okaniwa, acknowledged the increasing presence of Japanese companies in Kenya, commending the country for improving 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.
