Kenya, Japan enhance economic ties with Dongo Kundu investments

Kenya is deepening its partnership with Japan to boost investments at the Dongo Kundu Special Economic Zone (SEZ).

Investments, Trade and Industry Cabinet Secretary Salim Mvurya announced on Wednesday, August 28, that Japan, through the Japan International Cooperation Agency (JICA), will enhance infrastructure in the area, focusing on water and road networks.

Mvurya said that previous compensation issues had delayed several projects at the SEZ but that these have now been resolved.

 He noted that two Japanese companies in the automobile industry and one in fish processing are among those setting up operations at the SEZ.

The government is also working to expedite a partnership agreement between the Kenya Industrial Research and Development Institute (KIRDI) and Japan.

The proposed partnership aims to empower local manufacturers in the automobile sector to venture into assembling businesses.

 "We want to make Kenya a hub for the automobile value chain," said Mvurya, adding that the move would encourage Japanese companies to establish assembly warehouses in the country for export.

The agreement also includes plans for Japanese investors to collaborate with KIRDI to train local manufacturers.

 "Toyota, Isuzu, and AVA have already established operations in Mombasa and Nairobi," added Mvurya.

At the same time, the Japanese government has extended 15 sponsorships in technology and AI to support capacity building and innovation in Kenya.

Japanese Ambassador to Kenya Ken Okaniwa acknowledged the growing presence of Japanese companies in the country and commended the country's efforts to improve its business environment.

"In the last six years, 120 Japanese companies have started operations in Kenya, contributing to the economy and creating job opportunities," noted Okaniwa.