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Ruto pitches more trade as Japan proposes an economic bloc with Africa
What you need to know:
- President William told Japan Prime Minister Shigeru Ishiba that a trade deficit could be helped with lower tariffs.
- Shigeru Ishiba proposed an economic partnership with the African countries aimed at drawing in investors.
President William Ruto wants Japan to open up their market to Kenyan produce to seal a widening gulf in trade, even as Tokyo proposed some sort of economic bloc with African countries.
The developments emerged at the ongoing 9th Tokyo International Conference on African Development (TICAD), a triennial summit of leaders of Japan and Africa to discuss economic cooperation.
Ahead of the Summit which kicked off on Wednesday in Yokohama, President Ruto told Japan Prime Minister Shigeru Ishiba that a trade deficit could be helped with lower tariffs.
“Our trade has grown exponentially in that period, growing by 33 percent in 2024. However, the trade relationship is heavily in favour of Japan,” Ruto said.
“There is a need for Japan to deal with tariff and non-tariff barriers so that Kenyan agricultural produce, including avocados and tea, can get more access to the Japanese market.”
State House Nairobi said Japan’s trade with Kenya reached $900 million in 2024, rising by a third in volume to the figures of 2023. But Kenya’s volume of exports there was just about $70 million, less than ten percent of the total volume.
For Japan, however, the compensation for that has been in development assistance, sending more to Kenya than any other African country.
According to Ruto, Japan has extended some $5 billion in aid to Kenya, helping improve transport, energy, agriculture and healthcare services.
As TICAD opened on Wednesday, however, it was clear more trade, not aid, would rectify the situation leaders admitted was unbalanced.
President William Ruto greets 8-year-old Kanta Omondi Aoro and his mother Mizuho Aoro upon his arrival in Yokohama, Japan on August 19, 2025. The President is in Japan for the 9th Tokyo International Conference on African Development.
Japan Prime Minister Shigeru Ishiba proposed an economic partnership with the African countries aimed at drawing in investors and propelling industrial development for the continent.
Mr Ishiba told the opening session that the proposed ‘Economic Region Initiative of Indian Ocean-Africa’ would be a game changer given that Japan and African countries have already established strong collaboration.
“This initiative seeks to promote Africa's regional integration and industrial development in the Indian Ocean-Africa Economic Region, which is expected to serve as a key driver of global economic growth, by fostering collaboration between Japan and countries across the Indian Ocean such as India and Middle Eastern countries,” the Prime Minister said.
Japan says the initiative is positioned as one of the efforts under the vision of a Free and Open Indo-Pacific (FOIP), which will support
Japanese companies in expanding trade and investment from countries across the Indian Ocean to Africa, and to ensure that the resulting benefits also flow back to Japan.
Pledged to strengthen partnerships
Japan has had routine summits with African leaders for the last 3 decades. But it has chased the game with China, now the biggest trading partner of Africa with a volume of $250 billion. Japan’s trade figures with Africa is a tenth of China’s. This is largely because China has often chosen to deal with governments and pursue state projects while Japan’s version often targets partnerships including with private sector.
Every TICAD, however, often announces new money and new focus areas. In the last TICAD in Tunis, leaders agreed to focus on inclusive growth, sustainable development and peace and stability, a key area the Japanese have often cited as a barrier to full cooperation.
Japan announced a cumulative $30 billion more worth of investments in Africa and they pledged to strengthen partnerships between Japan and Africa, in areas of infrastructure development, health, and peace and security.
In Yokohama, Mr Ishiba said that Japan will steadily work towards the realisation of this initiative together with African countries and the Indian Ocean region.
Yet this TICAD is taking place against the backdrop of growing concern over the skyrocketing tariffs imposed by the US President Donald Trump on African countries, despite the US being one of the leading markets for African products.
Also, Japan is expected to sign a free trade agreement with the African countries in the ongoing conference, which has attracted leaders from several countries including President William Ruto of Kenya.
In Kenya, the President said that over 120 Japanese investors are propelling the economy with investment is several areas such as motor vehicle industry, manufacturing and technology.
“They are part of a growing network of businesses that see Kenya as gateway to Africa market and a trusted partner in investment and growth.”
