President Ruto invites Japan to collaborate on key economic initiatives

President William Ruto has listed key collaboration areas between Kenya and Japan, in a renewed drive to strengthen economic ties.

Speaking at the opening of the TICAD 9 summit in Yokohama,  Japan, the President highlighted the potential for deepened cooperation in various sectors.

He called for collaboration in five priority areas that align with Kenya’s Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA)

On digitalisation, where he sought Japan's support, the President said Kenya aims to enhance digital skills and innovation hubs, aimed at creating more than one million digital jobs.

He said Kenya aims to become a hub for global software solutions and business process outsourcing.

The President also invited Japanese investors to improve universal health coverage, strengthen diagnostics and research and implement technology solutions that enhance efficiency in healthcare financing.

Ruto proposed the introduction of precision farming and smart irrigation techniques to boost food security and increase farmers' incomes, seeking Japanese expertise  to achieve this.

He also invited investments in in is automotive sector highlighting opportunities for collaboration in expanding electric vehicle (EV) assembling and charging infrastructure, leveraging on Japan’s advanced automotive technologies.

Ruto further sought joint investments in green technologies, including renewable energy and clean cooking solutions, positioning Kenya as a leader in the global renewable energy sector.

He noted that Japan is Kenya’s third-largest source of Foreign Direct Investment (FDI), contributing over $205 million (Sh26.5 billion) in 2024 alone.

With 123 Japanese companies operating in Kenya, spanning sectors from manufacturing to renewable energy, the partnership is robust.

Bilateral trade between the two countries reached $913 million (Sh117.9 billion) in 2024, marking a 33 per cent increase from the previous year, with Japan being a leading source of motor vehicles for Kenya.

Over the past five decades, Japan has provided more than $5 billion  (Sh646 billion) in development assistance to Kenya, significantly impacting various sectors such as transport, energy and healthcare.

The recent $116 million (Sh14.9 billion) commitment to the Olkaria VII geothermal project exemplifies the ongoing strength of this collaboration, the President noted. 

Despite global economic challenges, Ruto emphasised Kenya’s resilience, projecting a GDP growth of 5.6 per cent for the year. He noted the stability of the Kenyan shilling and the country’s low inflation rates, which contribute to a favourable investment climate.

The establishment of a Green Investment Fund by the Kenya Development Corporation, aimed at investing $40 million (Sh5.2 billion ) for sustainable projects, further demonstrates Kenya’s commitment to fostering a green economy, he said.

“Kenya is open for business,” Ruto said, inviting Japanese investors to explore opportunities in the country.

He said Kenya has signed strategic agreements among them the Africa Continental Free Trade Area (AfCFTA) and various economic partnerships with the European Union, the United States and the United Kingdom, which collectively open up expansive markets for trade and investment.