Japan has extended up to Sh21.7 billion (25 billion yen) to support the Kenya's vehicle assembly and energy sectors as the ninth Tokyo International Conference on African Development (TICAD 9) which concluded yesterday.
The deals were signed by Prime Cabinet Secretary Musalia Mudavadi and Nippon Export and Investment Insurance Chief Executive Officer Atsuo Kuroda. "The deals will strengthen our local vehicle assembly and parts manufacturing industry while also addressing electricity transmission and distribution losses, currently standing at about 23 per cent,'' Musalia said.
In the document seen by Saturday Standard, between Sh10.5 billion and Sh13.1 billion will support the National Automotive Policy, Sh5 billion will go to procurement of high-transformers which will reduce electricity transmission losses, and Sh4 billion will go to general budget support, focusing on projects exempted from environmental impact assessment. The agreements come as Kenya negotiates with China to convert part of its dollar-denominated debt into a yuan one and extend repayment terms, a move aimed at easing sovereign borrowing costs. President William Ruto has insisted that the country is shifting away from short-term financing risks towards reducing expensive debts.
He said the country was weighing sustainability-linked (Green) bonds with guarantees, yen-denominated Samurai bonds, renminbi-denominated Panda bonds, and debt swaps.
