Kenya and Japan Enhance Economic Cooperation to Foster Trade and Investment
The Ministry of Investments, Trade and Industry alongside Japan has officiated the Kenya-Japan Business Forum 2025 with the aim of attracting Japanese Investors, boost industrialization, investment opportunities and economic growth.
The forum highlighted the nations’ collaborative potential, showcasing Kenya’s diverse investment opportunities and Japan’s advanced expertise in various industries through exchange of knowledge, insights and innovative ideas to attract Investors.
This year’s forum brings together over 100 Kenyan and 30 Japanese private sector companies drawn from various sectors including ICT, Health, Manufacturing, Shipping and Logistics, Financial Services, Energy, Construction, Insurance and Agriculture sectors, among others.
Speaking on Thursday during the forum inauguration in Nairobi, the Acting Cabinet Secretary (CS) for Investment, Trade and Industry Salim Mvurya has recognized the remarkable journey of cordial relations between these two countries since Japan has been Kenya’s number one partner in development cooperation.
He noted that Kenya remains a key exporter of agricultural products to Japan, providing products such as cut flowers and titanium ores, which amounted to $62.9 million in the latest trade figures.
Meanwhile, Kenya imports vehicles and ICT-related equipment from Japan, valued at over $263 million. The forum aimed to deepen this exchange, encouraging business delegations to forge partnerships and explore untapped potential in both countries.
Additionally, he noted some of the companies from Japan including Mitsubishi Heavy Industries France S.A.S. that focuses on energy, aerospace and plant systems, Kawasaki Heavy Industries Ltd., that engages in shipbuilding, aerospace and energy systems, Toyota Tsusho Corporation, which engages in trading and construction projects, Mitsui & Co., Ltd., which engages in trading and project development; Zensho Holdings Co., Ltd., which operates foodservice chains, Hagihara Industries Inc., that produces polyethylene products among others.
Mvurya said that Kenya’s government has prioritized expanding trade opportunities through initiatives like the African Continental Free Trade Area (AfCFTA) and the Tripartite Free Trade Agreement, opening access to a combined market across Africa.
“As a government, we firmly believe that the future of both countries rests on our resolution to open new markets for trade, developing much better inflows of investments, and making new opportunities available for our people. The Kenya government has been striving to open access to markets in Africa through the AfCFTA), which provides a new market for investments and Kenyan products across Africa,” he said.
The government has also emphasized climate-conscious investments through the African Green Initiative, offering tax rebates and incentives for companies embracing sustainable practices and urged the delegates to take advantage of all the incentives in the green investment and ensure that they promote foreign investments and increase Kenyan investment.
“We have the African Green Initiative, chaired by the President and companies that invest are also profiled as green investments. They get tax rebates and other incentives to ensure that they become even more sustainable,” said CS, adding that “Kenya has decided to ensure that we deal with matters of climate change and therefore all our investments are also being looked at in terms of how they are going to facilitate a green environment within the Ministry of Trade and the highest level in Kenya,” he stated.
He underscored the Japan’s commitment to Kenya’s development by ongoing infrastructure projects, including the Dongo Kundu Special Economic Zone in Mombasa, supported by the Japan International Cooperation Agency (JICA) hence the completion of the Dongo Kundu bypass marks a significant milestone, paving the way for increased industrial activity and foreign investment.
“We are very happy that the Japanese government has committed to invest with us in the Dongo kundu Special Economic Zone in Mombasa, and I know that through JICA the Dongo kundu bypass is now open. And we have further commitments to have further infrastructure within the special economic zone,” he said.
Mvurya stated that the Kenyan and Japan leadership have good relations at leadership level, noting that during the Kenya’s president visit last year at a high-level discussion with the Prime Minister of Japan, the business environment has been made very clear by both governments, therefore urge business delegations to take up the opportunity and spur investment.
He has called for collaboration in sectors such as maritime, textiles, tourism and technology for both nations, and vowed to leverage their strong diplomatic ties in order to unlock new economic opportunities for mutual benefit.
