Nairobi, June 9 -- Kenya's motor vehicle assemblers and parts manufacturers are set to access soft loans of up to Sh7.5 billion under a Japanese-backed programme aimed at expanding local vehicle production and reducing the country's reliance on imports.

The funding will come from a 15 billion Japanese Yen (about Sh12 billion) Samurai Loan Facility signed between Kenya and Japan in March 2026.

The Ministry of Trade has been seeking approval to spend Sh7.5 billion of the loan in the 2026/27 financial year to establish and upgrade an automotive parts manufacturing facility, provide technical support to the industry players, among others as Kenya seeks to grow its automotive industry.

The three-year programme is aimed at supporting Kenya's...