Nairobi, August 20, 2025 – Kenya has signed a yen-denominated loan agreement with Japan to reduce borrowing costs and fund key infrastructure and social development projects. The deal, concluded during the Tokyo International Conference on African Development (TICAD IX) in Yokohama, is backed by Nippon Export and Investment Insurance (NEXI).
President William Ruto welcomed the agreement, saying, “GDP is expected to grow 5.6% this year, despite global domestic headwinds arising from escalating tariffs and trade disruptions affecting many economies. This partnership with Japan will help us accelerate our development agenda.”
Japan’s concessional financing model contrasts with China’s Belt and Road Initiative, emphasizing sustainability, transparency, and risk mitigation for African borrowers. Analysts note that such loans strengthen Kenya’s bargaining position while deepening bilateral ties with Tokyo.
Kenya has been diversifying its Asian partnerships, hosting Japanese investments in automotive, energy, and technology sectors. The yen-denominated loan underscores Nairobi’s strategy to leverage international partnerships for sustainable growth while managing debt prudently, reinforcing Japan’s growing economic diplomacy across the continent.