Japan will provide up to JPY25 billion in Samurai financing to Kenya to support the vehicle assembly and energy sectors. The agreement was signed by Kenya’s Ministry of Foreign Affairs, and Nippon Export and Investment Insurance (NEXI), during the Ninth Tokyo International Conference on African Development. A Samurai loan is a yen-denominated cross-border syndicated loan for non-Japanese borrowers and has relatively low pricing due to ample liquidity of Japanese investors. The loan facility will strengthen Kenya’s vehicle assembly and parts manufacturing industry, and address electricity transmission and distribution losses, currently standing at about 23 per cent of national output. The announcement followed the signing of a term sheet for a yen-denominated loan backed by NEXI. Japan’s Ministry of Foreign Affairs confirmed the loan would be NEXI-guaranteed, a structure designed to lower sovereign funding costs
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