Nairobi News


Kenya, Iran agree to set up motor vehicle manufacturing plant in Mombasa

The Kenyan and Iranian governments have penned a deal for the setting up of motor vehicle manufacturing plant in Mombasa.

Speaking at State House, Nairobi on Wednesday after signing a Memorandum of Understanding with his Iran counterpart Sayyid Ebrahim Raisi, President William Ruto said the project will greatly boost the automotive sector in the country.

“We have had discussions with President Raisi and he is aware that we have eliminated taxes on the manufacture of medical equipment and pharmaceutical product, which will mean that Iran will take advantage of the opportunity and set up medical facilities in Kenya. I am confident that the project will be unstoppable as the name suggests,” President Ruto said.

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President Raisi, arrived in Kenya early Wednesday for a state visit as part of a tour of Africa, which will also take him to Uganda and Zimbabwe.

His visit to Kenya is the first by an Iranian president in more than a decade, and represents a bid to diversify economic ties in the face of crippling US sanctions.

The Ministry of Foreign and Diaspora Affairs said the schedule of the Iranian President had been reviewed to allow for the finalisation of key MoUs that are central to the furtherance of relations.

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“During the State Visit, President Raisi will hold high-Level consultations with his host, President William Ruto, on the range of issues that anchor bilateral relations. This will include the finalisation of key MoUs that are central to the furtherance of relations and shared prosperity between the two countries,”  Cabinet Secretary for Foreign and Diaspora Affairs, Dr Alfred Mutua said.

President Raisi’s three-day trip to Kenya, Uganda and Zimbabwe is the first visit to Africa by an Iranian leader in 11 years.

Kenya has however signed numerous deals with the Middle Eastern country, including a deal to export 4m tonnes of oil to Kenya annually, direct flights between Tehran and Nairobi and scholarships for Kenyans to pursue higher education in Iran.

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