Kenya has secured a landmark multimillion-dollar agreement with the United States to launch electric vehicle (EV) manufacturing in Nairobi, marking a major step in reshaping the country’s transport and energy future. President William Ruto and California Governor Gavin Newsom presided over the signing of the California–Africa Climate and Economic Partnership during 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,” President Ruto confirmed in a statement.
The pact makes Kenya the first African country to partner with California, the world’s fourth-largest economy, on a climate and economic initiative of this scale. A Centre of Excellence on Clean Transport Systems will be established in Nairobi to lead EV 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 added.
The deal extends beyond EVs, covering renewable energy, climate-smart agriculture, resilient food systems, green ports, digital innovation, and adaptation strategies.
Kenya is also deepening ties with Japan, a partnership spanning over six decades. Japan remains Kenya’s third-largest development cooperation partner, having contributed more than USD 5 billion (approximately Ksh650 billion) toward transformative projects. These include the expansion of Olkaria’s geothermal capacity, modernization of Mombasa Port, and the creation of the Dongo Kundu Special Economic Zone. More than 120 Japanese firms already operate in Kenya, attracted by the country’s strategic East African position, skilled workforce, and growing infrastructure.
Relations with the United States continue to strengthen under the Kenya Kwanza government. In 2024, President Ruto’s State Visit to Washington cemented collaboration under the African Growth and Opportunity Act (AGOA). One highlight was a USD 1 billion investment by Microsoft and UAE-based AI firm G42 to establish a geothermal-powered data center in Kenya, which will host a new Azure cloud region for East Africa.
Kenya and the U.S. also launched the Climate and Clean Energy Industrial Partnership, where U.S.-based Virunga Power will invest USD 100 million to develop six hydropower plants over five years, adding 31 megawatts of renewable capacity.
Through these partnerships, Kenya is positioning itself as a hub for clean energy, innovation, and advanced manufacturing in Africa, while strengthening ties with two of the world’s largest economies.
By Risper Akinyi
