The Principal Secretary for National Treasury, Dr. Chris Kiptoo, held a bilateral meeting with the Japan International Cooperation Agency (JICA) on the sidelines of the IMF/World Bank Annual Meetings. The discussions, led by JICA Senior Vice President Hara Shohei, focused on a $500 million Samurai Bond aimed at diversifying Kenya’s financial sources and supporting key development initiatives.
The $500 million Samurai Bond, insured by Nippon Export and Investment Insurance (NEXI), is expected to play a significant role in funding decarbonization efforts in Kenya. The proceeds will support several initiatives, including:
- Subsidies for electric vehicles (EVs) to accelerate the transition to cleaner transport.
- Energy projects aimed at increasing renewable energy production.
- Future infrastructure developments, including the Dongo Kundu Special Economic Zone (SEZ) in Mombasa, which is positioned to attract investments and enhance regional trade.
The meeting also focused on funding for the Mombasa Port Area Road Development Project (MPARD). This project aims to improve access to Mombasa Port, reduce congestion, and facilitate the smooth movement of goods in and out of the port, reinforcing its status as a key logistics hub for East Africa.
The Samurai Bond marks Kenya’s strategic move toward diversifying its financial portfolio by tapping into alternative funding sources outside the typical dollar-denominated debt markets. With the inclusion of the Japanese yen in its currency mix, Kenya seeks to mitigate exchange rate risks while attracting international investors.
This meeting between the Treasury and JICA highlights the strengthening of bilateral relations between Kenya and Japan. With the Samurai Bond set to fund green energy, transport electrification, and strategic infrastructure, Kenya aims to boost economic growth while promoting sustainable development. As the government seeks to diversify financing avenues and align with global decarbonization efforts, partnerships like these will be crucial in shaping the nation’s future.
