Kenya eyes Sh3tn investments from Japan for Africa

Kenya will leverage its long-term relationship with Japan to reap maximum benefit from the Asian giant’s newest $30 billion (Sh3 trillion) investment pledge to transform Africa.

More than 20 MoUs were signed between Japanese companies, Kenya’s private sector and government institutions at the two-day Tokyo International Conference on African Development ending yesterday. The breakdown and value have not been estimated.

Japan’s Nairobi pledge is in addition to the 2013 five-year investment promise of $30 billion (Sh3. trillion) to Africa. Japan has implemented 67 per cent of that money,Japanese Prime Minister Shinzo Abe has said.

A total 73 MoUs were signed between Japan and African nations; 22 Japanese companies inked deals.

The Nairobi Declaration will guide the Japan-Africa development agenda for three years.

President Uhuru Kenyatta yesterday said, “Kenya is the main Overseas Development Assistance beneficiary in Africa from Japan and the assistance has improved infrastructure, health, education and other sectors.”

Japan has been heavily involved in transformational infrastructure projects, the President said during high-level policy dialogue on the private sector in development.

These include building geothermal power plants.

Japan pledged to invest $10 billion (Sh1trillion) in Africa’s infrastructure starting this year.

Abe said the funds will be channeled through the African Development Bank, focusing on electrical power, urban transport, roads and ports.

“Japanese companies have taken the opportunity to express as a ‘business declaration’ their determination to continue to commit to Africa’s development,” Abe said.

The Kenya Investment Authority signed three MoUs that will increase investment flow from Japan, managing director Moses Ikiara said.

These include a partnership with the Japan External Trade Organisation to offer Kenyan investments in Japan.

Keninvest also signed MoUs with Japan’s Mizuho Bank and the Bank of Tokyo-Mitsubishi.

“The two cover all big corporates in Japan. They will directly offer investment opportunities in Kenya to their clients in Japan,” Ikiara said.

Kenya also pushed for more market access for its products in Japan.

“We have asked Abe for easy and more market access for agricultural products, including tea and horticulture,” said Kiprono Kittony, chairman of the Kenya National Chamber of Commerce and Industry.

Kenyan firms have started talks on having equity in Japanese Kenya-based companies.

“We expect a lot of benefits,” Kittony said.

Kenya’s health sector is a big beneficiary.

First Lady Margaret Kenyatta’s Beyond Zero initiative received a Sh8 million mobile laboratory with improved disease diagnostic capacity, especially for HIV-Aids and blood-related diseases.