TOKYO, Japan, Aug 22 – Japan has confirmed its intent to extend up to 25 billion yen (about Sh22 billion) in Samurai Financing to Kenya, a facility that will bolster the local vehicle assembly and parts manufacturing industry while addressing inefficiencies in the energy sector.The announcement was made during the ongoing Tokyo International Conference on African Development (TICAD 9), in a ceremony attended by President William Ruto and Japanese Prime Minister Shigeru Ishiba.Prime Cabinet Secretary Musalia Mudavadi, who signed a Memorandum of Understanding with Mr. Atsuo Kuroda, Chairman and CEO of Nippon Export and Investment Insurance, said the financing package reflects Nairobi’s determination to diversify funding sources and accelerate industrial growth.“This facility will strengthen our local vehicle assembly and parts manufacturing industry while also addressing electricity transmission and distribution losses, currently standing at about 23 percent of our national output,” Mudavadi said in a statement.According to Mudavadi, the proceeds will be channeled into expanding the automotive industry, including electric vehicle manufacturing, creating quality jobs, and spurring innovation in green technology. The funds will also be invested in improving energy efficiency, lowering power costs, and reinforcing fiscal stability, freeing up more resources for national development programs.The deal is expected to give a major boost to Kenya’s efforts to position itself as an automotive hub in Africa, complementing ongoing partnerships with global carmakers already assembling vehicles in Nairobi and Thika.“This partnership reflects Kenya’s bold and forward-looking strategy to unlock new opportunities for our people, and deepen ties with Japan as a trusted partner in Africa’s transformation story,” Mudavadi noted.Kenya has in recent years turned to Samurai bonds yen-denominated debt instruments backed by Japanese institutions to finance infrastructure and development projects, with the latest package marking one of the most targeted facilities yet towards industrialization and energy efficiency.