As we mark 60 years since the establishment of diplomatic relations between Japan and Kenya, I would like to extend my heartfelt congratulations to the citizens of both countries and affirm Japan External Trade Organization (Jetro)’s commitment to continue working towards strengthening our economic relationship.
Jetro is a Japanese government-affiliated trade and investment promotion agency with a network of 76 overseas and 49 domestic locations.
The Nairobi office was established in 1957. In the 1960s, Jetro promoted Japanese products in Kenya and across Africa through the "Africa Caravan" project, which traversed the continent in 30 exhibition trucks filled with Japanese products.
In the following years, Japan went on to achieve dramatic economic growth establishing itself as a major global trading and investment partner. During this period, Japan also implemented a programme of economic cooperation that saw Kenyan products, including cut flowers, tea and coffee gain access to the Japanese market.
In addition, through Japanese foreign direct investment as well as overseas development assistance, the Japan-Kenya relationship became one of reciprocity.
In 2016, Nairobi hosted the sixth Tokyo International Conference on African Development (TICAD6) further establishing Kenya’s status as a key partner for Japan.
Following increased cooperation between Japan and Africa, the number of Japanese companies expanding into the continent is rising.
Kenya has seen the most rapid increase, with 114 companies, a two-fold jump within the past five years. Automobile and motorcycle manufacturers such as Toyota, Isuzu, and Honda are contributing greatly to the development of Kenya's manufacturing industry through their assembly plants.
In energy, in addition to renewable energy development projects such as geothermal power plants, Toyota Tsusho is ramping up its involvement in electric mobility, through its investment in BasiGo.
Additionally, Sumitomo Corporation is contributing significantly to the development of the digital industry through the development of digital financial services and smartphone assembly business with M-Kopa.
Sumitomo has begun efforts to develop other African markets in Japan and Kenya and has entered Ethiopia together with Safaricom. In the medical field, Forest Japan Medical Centre and Connect Afya's laboratory services are providing high-quality services.
Additionally, in the agricultural field, Japanese firms are contributing to the advancement of agriculture in Kenya through Kubota's tractors and Ebara Corporation's pumps.
Sojitz is also in the manufacturing and sale of instant noodles together with a Kenyan company.
Japan's foreign direct investment in 2022 reached $161.4 billion. Kenya offers a growing market, and Japan has the experience and technology to support its development.
The writer is the executive director of Jetro Kenya.
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