Kenya has signed a multimillion-dollar agreement with the United States to launch electric vehicle manufacturing in Nairobi, a move that is set to transform the country’s transport and energy sectors.
President William Ruto and California Governor Gavin Newsom witnessed the signing of the California–Africa Climate and Economic Partnership on the sidelines of the United Nations General Assembly in New York.
“I witnessed the signing of the California–Africa Climate and Economic Partnership between Kenya and the State of California, U.S,” read Ruto’s statement in part.
Nairobi to Host EV Centre of Excellence
The pact makes Kenya the first African nation to partner with California, the world’s fourth-largest economy, on a climate and economic programme of this scale.
A Centre of Excellence on Clean Transport Systems will be set up in Nairobi to drive electric vehicle production, research, and advanced skills training.
“As part of the agreement, a Centre of Excellence on Clean Transport Systems in Africa will be established in Kenya to drive innovation and knowledge exchange,” Ruto confirmed
The agreement also covers renewable energy, green ports, climate-smart agriculture and resilient food systems, green infrastructure, digital innovation, and climate adaptation.
Kenya and Japan Trade Deal
On the other side, Kenya and Japan continue to deepen a partnership that has lasted over six decades. Japan is now Kenya’s third-largest development cooperation partner, having contributed more than USD 5 billion (approximately Ksh650 billion) toward transformative projects in the country.
This financing has supported major projects, including the geothermal expansion in Olkaria, port upgrades at Mombasa, and the development of the Dongo Kundu Special Economic Zone.
Also Read: Key Trade Deals Kenya Has Secured with Major Global Powers Under Ruto Govt
Over 120 Japanese firms are already operating in Kenya, drawn by the country’s strategic position in East Africa, growing infrastructure, robust capital markets, and skilled workforce.
United States partnership
Kenya’s engagement with the United States under the Kenya Kwanza government has also yielded a series of major partnerships across several sectors.
The East African nation strengthened ties through the African Growth and Opportunity Act (AGOA), especially in 2024 when President Ruto was welcomed by former President Joe Biden for a State Visit, with a renewed focus on strategic partnership, democratic values, counterterrorism, and defence cooperation.
One headline deal inked following the visit is a USD 1 billion investment by Microsoft and UAE-based AI firm G42 to build a data centre in Kenya.
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This centre will be powered by geothermal energy and will house a new Azure cloud region for East Africa.
In the energy and climate space, Kenya and the U.S. launched the U.S.-Kenya Climate and Clean Energy Industrial Partnership.
Under this partnership, Virunga Power, a U.S. firm affiliated with Power Africa, will develop six hydropower plants in Kenya, investing $100 million over the next five years, aiming to deliver 31 megawatts of renewable energy capacity.
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