NAIROBI, Kenya, Oct 29- Japanese investors from the Toyota Tsusho Corporation have resolved to continue working with the Ministry of Investments, Trade and Industry to further its business interests in Africa for the mutual benefit of the Kenyans
This is following a meeting held between Cabinet Secretary for Investments, Trade and Industry Rebecca Miano and the Japanese investors where they agreed to leverage Kenya’s strategic posture and scale up local manufacture of parts and components for the company’s assembling facility in Kenya.
“This is an optune time for the Japanese conglomerate to work with Kenyan counterparts to develop the requisite capacity for the Kenyan-based facility’s enhanced operations, targeting the greater African Market under the Africa Continental Free Trade Agreement (AfCFTA), among other markets,”she said.
The CS made the remarks during a meeting with top management of the Toyota Tsusho Corporation, which was held on the sidelines of the G7 Session of Trade Ministers meeting held, in Sakai, Osaka, Japan.
The meeting was informed that the National Automotive policy was developed in a consultative process between the Government of Kenya and the automotive industry stakeholders and provides for making Kenya the destination of choice for the Industry.
However, in light of emerging industry trends, as highlighted by the Toyota Tshusho management, it was agreed that the ongoing development of the automotive bill and regulations therein also be done in close consultation with the Industry stakeholders.
The meeting noted with encouragement that Kenya has made milestones as an automotive assembly hub for the African region, supported by well-skilled manpower and the availability of assembling facilities.
Present in the meeting included Principal Secretary State Department for Industry Juma Mukhwana, Kenya’s Ambassador to Japan Amb. Tabu Irina.
The Japanese delegation included the President and CEO of Toyota Tsusho Corporation Ichiro Kashitani, , Kashumasa Kimura COO of Toyota Tsusho Africa Division and Uchikoshi Fumihiro Second Secretary, the Japanese Embassy in Nairobi.
-Key Resolutions-
Some of the resolutions made in the meeting include the finalization of the automotive bill and automotive regulations which will be expedited in collaboration with the Industry stakeholders.
The bill and regulations will provide for End of Life Vehicle (ELV) recycling for both used cars and batteries, thus helping to raid the country of an otherwise growing menace of waste.
Currently, it is estimated that over 70,000 vehicles are lying in junkyards after coming to the end of their useful life.
The meeting resolved End of Life Vehicle (ELV)recycling should go hand in hand with reduction in the age of second-hand vehicles to be allowed into Kenya, which in turn is anticipated to drive up demand for new vehicles and hence support local assembling with an attendant increase in job creation.
The meeting advocated for a deliberate capacity building of the local manufacturers of parts and components to ensure that they can keep pace with the industry’s demands, with regard to the level of technology and volumes.
This in turn calls for deliberate support by the original equipment manufacturers (OEM) to make this happen.
Noting that the Kenya vehicle manufacturers (KVM)-one of the local automotive assembling facilities in Kenya- is experiencing financial difficulties, it was agreed that Toyota Tshusho, as one of the stakeholders in the industry, steps in to save the facility from imminent collapse.
