Toyota Tsusho signs investment deal on geothermal, renewables in Kenya
Signing of framework agreement for collaboration between the Republic of Kenya and Toyota Tsusho Corporation (source: Republic of Kenya)
Carlo Cariaga
7 Feb 2024
Toyota Tsusho has signed an agreement with the Republic of Kenya to collaborate on renewables development, including geothermal, and vehicle manufacturing.
Kenyan President William Ruto has signed three deals with Japan’s Toyota Tsusho Corporation that will support the growth of both the vehicle manufacturing sector of Kenya and its renewable energy industry.
Among the deals signed is an investment of Ksh 75 billion (approx. USD 461.5 million) on the Menengai geothermal plant. Investments will also be made on other renewables – Ksh 15 billion in a wind farm project, and Ksh 8 billion on a solar energy project.
Toyota Tsusho will bolster Kenya’s industrial sector by setting up a vehicle manufacturing facility with an initial investment of Ksh 800 million. President Ruto stated that the goal is to ensure that locally manufactured vehicles are affordable, thus discouraging the purchase of used cars. The agreement also promotes the manufacture and use of hydrogen electric vehicles and hybrid vehicles.
The deals were signed by Cabinet Secretaries Kipchumba Murkomen, Rebecca Miano, and Davis Chirchir with Toyota Tsusho Corporation President and CEO Ichiro Kashitani in the presence of President Ruto. The signing has been a part of the Kenyan President’s trip to Japan to secure funding for government projects.
The first geothermal power plant in Menengai officially started supplying power to the grid in August 2023. Construction is expected to start soon for the second power plant following the financial close of the project.
Source: Republic of Kenya and Kenyans.co.ke
