Ruto To Deal With Problem Affecting Ksh10B Projects Funded By Japan

Kenya will address the double taxation problem facing projects funded by Japan’s Overseas Development Assistance (ODA).

A statement by State House on Wednesday, May 3 revealed that President William Ruto noted that he is seized of the issue that threatens the future of Ksh10 billion ODA projects in the country.

The Head of State added that it was his wish that ODA projects run smoothly, noting that Kenya is one of the biggest beneficiaries of the Assistance in Africa.

“We are pursuing the expeditious resolution of this matter within the due process of relevant institutions. The impact of this assistance is evident across the country; it has contributed immense benefits to the lives of millions of Kenyans," Ruto said.

President William Ruto with Japan Prime Minister Fumio Kishida at State House, Nairobi on Wednesday, May 3, 2023. /WILLIAM RUTO

He made the remarks on Wednesday at the State House in Nairobi during a bilateral meeting with the Prime Minister of Japan Kishida Fumio, whereby he expressed Kenya's keenness on strengthening and enriching its relations with Japan.

"Kenya celebrates 60 years of strong and rich diplomatic relations, marked by successful partnership and a deep mutual understanding with Japan. We are determined to strengthen and deepen our ties and broaden the scope of our friendship for the benefit of our citizens.

"Held bilateral talks with Prime Minister of Japan Kishida Fumio at State House, Nairobi; exchanged views on issues of mutual interest, including those that Kenya desires Japan to take up in its capacity as the 2023 Chair of G-7 and a non-permanent member of the UN Security Council," Ruto noted in a statement on his social media pages.

He lauded Japan for its investment in Kenya’s infrastructure and geothermal, commending it for its leadership in the climate agenda.

"We appreciate the huge investment that Japan continues to make in infrastructure and geothermal development. We also recognise its leadership in the climate agenda; Japan’s commitment of Sh6.5 trillion to climate finance for developing countries for 2021-2025 is laudable," he went on.

The President asked Fumio to continue funding projects such as the High-Tech lab at the Kenya Medical Research Institute (KEMRI), the Mombasa Intelligent Transport system and the Ahero Irrigation Scheme.

In the bilateral meeting, the leaders also exchanged views on issues of mutual interest, including peace and security in the Horn of Africa.

As Japan takes up its capacity as the 2023 Chair of G7 and a non-permanent member of the UN Security Council, President Ruto urged Prime Minister Fumio to ensure the international community helps in tackling hostilities in Sudan.

President Ruto further announced three avenues of partnership between Kenya and Japan, including job opportunities for Kenyans seeking to work in the Asian country.

“In our deliberations with Kishida, we agreed to align the curricular of our two countries so that Kenyans can access skilled and quality jobs in Japan,” the President stated.

The Head of State added that the Japanese government was key in implementing his bottom-up economic agenda and among the ways the Ruto-led government seeks to improve the economy is by setting up industrial parks.

“We have agreed on the development of the Dongo Kundu economic zone in Mombasa to expedite its construction,” Ruto explained how the Japanese government would help Kenya economically.

In return, Ruto promised to facilitate Japanese investors to exploit the industrial park, saying “Kenya is going to facilitate the investment of Japanese companies and also support Japan to be able to finance Kenya’s infrastructure and other developments."