President William Ruto has announced that the Japanese government has offered Kenya a loan of 25 billion yen (Ksh22 billion) through the Samurai bond scheme.
In a statement on Thursday August 21, the President confirmed that he and the Japanese Prime Minister had signed a statement of intent for the bond, which is a type of loan raised from Japanese investors.
The loan will be pivotal in ensuring that the government diversifies resource mobilisation for national development, according to Ruto.
"Kenya has signed various development cooperation documents at the ongoing Tokyo International Conference on African Development, TICAD, in Yokohama City, Japan," Ruto stated.
"They include the Statement of Intent on the Samurai Bond, a financial instrument issued by foreign entities in the Japanese capital markets, signed between our National Treasury and Nippon Export and Investment Insurance," he added.
According to Prime Cabinet Secretary Musalia Mudavadi, who witnessed the signing, the loan will be a fundamental ingredient in elevating the country's local vehicle assembly, parts of the manufacturing industry, and enhancing electricity connectivity in the country.
Mudavadi has further confirmed that he formalised the commitment through the signing of a Memorandum of Understanding by the Nippon Export and Investment Insurance chairperson, Atsuo Kuroda.
The Prime CS revealed that the loan will also be vital in deepening the diplomatic ties between the two countries, which have had a longstanding, healthy relationship for years.
"The proceeds will accelerate industrial growth, create quality jobs, and stimulate innovation in the automotive sector, including the manufacture of electric vehicles," Mudavadi said.
"They will also enhance energy efficiency to lower the cost of power, and reinforce fiscal stability, freeing more resources for our national development agenda," he added.
On the other hand, the Ministry of Health signed an MOU with Shionogi and Co. Ltd of Japan, which specialises in pharmaceutical research, development, and manufacturing, which will see the availability of Cefiderocol, an antibiotic approved for effective treatment of bacterial pneumonia.
"We also signed a Letter of Intent and Concept Note to Accelerate Access to Cefiderocol, a crucial antibiotic approved for effective treatment of bacterial pneumonia, in Kenya," Ruto said.
