Kenya bags Ksh 350 billion from Japan to Finance key Projects

Financial agreements worth KSh350 billion have been signed during President William Ruto’s visit to Japan.

These agreements will support projects and programmes in sectors that are aimed at turning around the economic fortunes of the country.

The largest projects to benefit are the Dongo Kundu Infrastructure Ecosystem and the Mombasa Gateway Bridge at the Coast at KSh260 billion.

President Ruto and Prime Minister Fumio Kushida also agreed that Kenya will issue a KSh40 billion Samurai bond in Japan to finance energy and infrastructure projects.

A Samurai bond is a yen-denominated bond issued in Tokyo by a non-Japanese company. The bond is, however, subject to Japanese regulations.

Kenya also secured KSh30 billion from the Japan Bank for International Cooperation to purchase heavy machinery and mechanised assets.

The Olkaria Geothermal Development Project will get KSh15 billion. Japan will also provide KSh1 billion for the ⁠production of medical oxygen for various hospitals.

Through the United Nations, Kenya will receive KSh320 million humanitarian aid ⁠for those affected by the recent El Nino-related floods.

Other agreements include MoUs on cooperation in the ICT, health, finance and security sectors.

He said the MoU will include enhancing the capacity of the Kenya Medical Research Institute (KEMRI) to build on its pandemic management potential at a cost of KSh3 billion.

To strengthen the partnership between the two countries in defence, an agreement on Defence Cooperation was also signed. This makes Kenya ⁠the first African country to sign a defence pact with Japan.

The President acknowledged Japan’s support for the completion of Phase II of the Mwea Irrigation Scheme and the National Rice Masterplan.

President Ruto witnessed the signing of the bilateral agreements on Thursday after holding talks with Prime Minister Kishida of Japan.

Distributed by APO Group on behalf of President of the Republic of Kenya.