Kenya and Toyota Tsusho Corporation of Japan have signed a framework agreement for collaboration in vehicle manufacturing and renewable energy development.
- •The company has committed Kshs 800 million to revive the struggling Kenya Vehicle Manufacturers.
- •KVM, jointly owned by the government and private companies, was established in the 1970s.
- •In Tokyo, Japan, President Ruto witnessed the signing of the agreement in the presence of Toyota Tsusho Corporation of Japan President Ichiro Kashitani.
KVM manufactured its first car in August 1976. It is jointly owned by the government (35%), CMC (32.5%), and DT Dobie (32.5%).
Last September, the company was awarded the contract to assemble Roam Move, a fully electric 51-passenger shuttle bus.
The Kenyan vehicle assembly industry’s production has been too low compared to the market demand. Toyota’s investment will enable Kenya to upgrade its technology to manufacture quality local vehicles to stem the deficit.
“We must have a balance between the number of imported and newly manufactured vehicles,” President William Ruto said.
On renewable energy development, the agreement included KSh 15 Billion Meru Wind Farm Energy, KSh 8 Billion Isiolo Solar Energy and KSh 75 Billion Menengai Geothermal Plant. It also entailed the promotion of electrified vehicles including hydrogen electric vehicles and hybrid vehicles.
