Kenya and Japan seek to transform automotive industry

Posted on : Wednesday , 29th November 2023

Kenya and Japan have initiated an Industrial Policy Dialogue with the aim of defining the path of industrial cooperation that will boost their economic ties.


This is intended to enhance the mutually advantageous relationship between the two countries, according to Cabinet Secretary for Trade, Investment, and Industry Rebecca Miano, who met with Japan's Minister for Economy, Trade, and Industry, Yasutoshi Nishimura, during bilateral talks.


Miano stated that Kenya and Japan have decided to start a joint cooperation to promote market access through boosting supply capacity for product development and export development. Miano is in Japan for the G7 Trade Ministers meeting in the City of Osaka.


"The Ministries of Trade, Investment, and Industry of Kenya and the Ministry of Economy, Trade, and Industry of Japan have confirmed that the specific framework of the Industrial Policy Dialogue will be decided by both sides at the working level," stated Miano.


The Cabinet Secretary noted that, from a global investment perspective, Africa is a promising next frontier, and Kenya strategically positioned Japan as a trustworthy partner for manufacturing goods for both the African continent and the rest of the world.


Miano stated that the Industrial Policy Dialogue will be very helpful in assisting the two nations in prioritizing their investments. She also mentioned that she and her Japanese counterpart had made a commitment to regularly engage and advocate for trade, industry, and investments that will benefit both nations.


"With the Africa Continental Free Trade Agreement among other markets, it is the right time that Toyota Tsusho Corporation worked with Kenyan counterparts to develop the requisite capacity for the enhanced operations of the Kenyan-based facility," stated Miano.


The Cabinet Secretary told the investors that Kenya will become the automotive industry's preferred destination under the National Automotive policy, which was created through consultation between the Kenyan government and industry participants.


In light of Kenya's achievements as an automotive assembly hub for the African continent, which are largely attributed to the country's highly skilled labor force and readily available assembly facilities, Miano stated, "it was resolved that the Toyota Tsusho Corporation continue to work with the Ministry of Investments, Trade and Industry to further its business interests."


The Cabinet Secretary pledged to support the expediting of the finalization of the automotive bill and regulations in cooperation with industry stakeholders. Increasing local content will allow the automotive industry to be favored in the region's market access based on rules of origin.

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