Kenya has secured a 22.1 billion shilling (US$171.31 million) Samurai financing facility from Japan to support vehicle assembly, reduce electricity losses and strengthen the government’s reform and development agenda.
The agreement, signed in Nairobi on June 22, will allocate 13.1 billion shillings (US$101.55 million) towards expanding local motor vehicle assembly as part of Kenya’s automotive policy aimed at boosting industrial growth and creating jobs.
A further 5 billion shillings (US$38.75 million) will finance programmes designed to reduce energy losses, improve electricity reliability and lower costs for consumers.
Another 4 billion shillings (US$31 million) will support government reforms by strengthening public services, protecting social investments and improving institutions that support long-term economic growth.
The deal is Kenya’s first major Samurai financing arrangement and comes as the government seeks alternative sources of funding amid tighter global financial conditions and rising pressure from public debt.
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Nairobi has been looking to diversify its external financing options as discussions with the International Monetary Fund (IMF) remain stalled over the treatment of securitised debt.
Kenya argues that securitisation can help address accumulated government arrears, while the IMF maintains that loans backed by future revenues and used for infrastructure projects should be recorded as sovereign debt.
The country’s US$3.6 billion IMF programme ended in April 2025, leaving the government to explore other financing avenues for development and infrastructure investments.
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Samurai financing refers to debt issued in Japanese yen under Japanese market regulations, typically by foreign borrowers seeking access to Japan’s financial markets.
President William Ruto said the agreement reflected Kenya’s strategy to secure affordable financing while deepening cooperation with Japan in technology, infrastructure, climate resilience and industrial development.
“We will measure its success not by the commitments we announce today, but by the opportunities we create, the jobs we generate and the improvements we deliver in the lives of our people,” Ruto said.
The funding comes as Kenya seeks to boost domestic manufacturing, improve energy efficiency and attract investment to support economic growth while managing fiscal constraints.
