The Government has signed off the Statement of Intent for a financing facility of Ksh22 billion from Japan to support Kenya’s ambitious plans for scaling up manufacturing of electric vehicles and reduce electricity network losses that average 23 percent of the national power output.
The NEXI Samurai Facility was announced on Thursday, August 21, 2025, at a ceremony witnessed by President William Samoei Ruto and Japan’s Prime Minister, Shigeru Ishiba, on the sidelines of the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan.
Who signed Kenya’s NEXI Samurai facility financing
The announcement was preceded by the signing of a Statement of Intent between Dr. Musalia Mudavadi, Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs, and Atsuo Kuroda, Chairman and Chief Executive Officer of Nippon Export and Investment Insurance (NEXI).
“This unique Samurai financing facility will promote our transformative program to stimulate the entire automotive value chain, foster linkages with other sectors and promote innovation, research and development,” said Dr. Mudavadi.
“It will further improve access to affordable, reliable power by reducing losses in electricity transmission and distribution,” he added.
The envisaged funding will enable Kenya to scale up its strategic initiative to revitalize and develop its automotive industry in line with the National Automotive Policy, which promotes opportunities for local manufacturing and sale of automotive products by gradually and eventually eliminating the importation of used vehicles and parts.
It will also improve energy efficiency by financing the replacement of ageing transformers with high efficiency ones.
The Samurai facility, with a seven-year maturity, demonstrates Kenya’s proactive and strategic approach to diversifying funding sources to reduce reliance on traditional borrowing channels, which are shrinking due to changing geo economic and political priorities.
Breakdown of NEXI Samurai facility financing
With the conclusion of the term sheet, the National Treasury and NEXI will sign a consequential agreement to pave the way for Kenya to access the credit for the following areas:
- The Ministry of Investment, Trade and Industry will benefit from 15 billion yen (Sh13.1 billion) to support local vehicle assemblers and parts manufacturers to increase energy efficient and environmentally friendly local content, thus reducing importation of used vehicles that contribute to high carbon emissions. This will enhance Kenya’s competitiveness in manufacturing electric vehicles and parts. The facility also includes a technical education and training component to develop skills for the emerging green automotive industry.
- The Ministry of Energy will access 5.5 billion Yen (Sh4.8 billion) to reduce electricity losses arising from inefficiencies in the electricity transmission and distribution system. The key activities under this component including purchase and installation of high efficiency transformers for the national distribution network and capacity building for engineers handling these transformers.
- The balance of 4.5 billion yen (Sh3.9 billion) will be available for general budgeted expenditure to which specific allocations will be agreed upon application by the National Treasury. This will improve fiscal stability, freeing resources for national development programs.
Dr. Mudavadi appreciated the Government of Japan for its commitment to support Kenya’s Bottom-Up Economic Transformation Agenda through partnerships in moving up priority value chains that contribute to socioeconomic growth and shared prosperity for all Kenyans.
