Kenya, Japan ink deal to enhance water, road networks in Dongo Kundu Special Economic Zone

The Dongo Kundu Special Economic Zone has received a boost after Japan, through the Japan International Cooperation Agency (JICA), announced plans to enhance infrastructure in the area, focusing on water and road networks.

After a meeting between Japan Ambassador to Kenya Ken Okaniwa and Trade Cabinet Secretary Salim Mvurya on Wednesday, an agreement over the completion of works at the economic zone was struck, paving the way for investors to begin setting up industries.

Mvurya announced that two Japanese companies in the automobile industry and one in fish processing are among those setting up operations at the SEZ.

The government is also working to expedite a partnership agreement between the Kenya Industrial Research and Development Institute (KIRDI) and Japan.

The proposed partnership aims to empower local manufacturers in the automobile sector to venture into assembling businesses.

"We want to make Kenya a hub for the automobile value chain," said Mvurya, adding that the move would encourage Japanese companies to establish assembly warehouses in the country for export.

The agreement also includes plans for Japanese investors to collaborate with KIRDI to train local manufacturers.

"Toyota, Isuzu, and AVA have already established operations in Mombasa and Nairobi," added Mvurya.

AI and technology sponsorships

The Japanese government also extended 15 sponsorships in technology and AI to support capacity building and innovation in Kenya.

The Government of Japan has started infrastructure development at the Dongo Kundu Special Economic Zone following a meeting between Japan's Ambassador Ken Okaniwa and Trade Cabinet Secretary Salim Mvurya to review cooperation in areas like roads and water. pic.twitter.com/U4C0wsTJ03

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Ambassador Okaniwa acknowledged the growing presence of Japanese companies in the country and commended the country's efforts to improve its business environment.

"In the last six years, 120 Japanese companies have started operations in Kenya, contributing to the economy and creating job opportunities," noted Okaniwa.

The partnership will also include collaborations between Japanese investors and the Kenya Industrial Research and Development Institute (KIRDI). "Japanese investors will work with KIRDI to train local entrepreneurs wishing to engage in motor vehicle assembly," Mvurya noted.

The initiative is expected to strengthen Kenya's technical capabilities and foster innovation in the industry.

Among the potential opportunities arising from this collaboration is the establishment of a motor vehicle assembly line by a Japanese firm at the Dongo Kundu Special Economic Zone (SEZ) on Kenya's coast.

Currently, the 3,000-acre SEZ has already attracted interest from 97 investors, highlighting its growing significance as a hub for economic activities.

In Mvurya's explanation, Toyota has already announced plans to set up an assembly plant in Thika, while Associated Vehicle Assemblers (AVA) is operational in Mombasa County. AVA, based in Miritini, Mombasa, assembles vehicles for several international brands, showcasing the country's potential as an automotive assembly centre in the region.

The Japanese Ambassador to Kenya, Okaniwa Ken, praised the consultations with the Kenyan Cabinet Secretary, noting the fruitful discussions on the manufacturing and assembly of cars in Kenya.

He extended an invitation to Mvurya to attend an international expo in Osaka in June 2025. "It is an important event, and the CS can use the occasion to promote Kenya as a destination for investment and tourism," the ambassador said.