• Kenya, Shandong Linglong sign $800M tire factory deal
• Plant in Mariakani to create 1,500+ jobs, boost industry
• Part of Kenya’s push to raise FDI and cut imports

Kenya signed an $800 million investment agreement with Chinese tire manufacturer Shandong Linglong Tire Co. Ltd. to build a new tire factory in Mariakani, the country’s Ministry of Investment, Trade and Industry announced.

The deal was finalized on Tuesday at the 2025 Arise Integrated Industrial Platforms investment forum in Kenya, which brought together investors, policymakers, and financial institutions.

"We stand firm in positioning Kenya as a premier investment destination and a global hub of choice," said Kenyan President William Ruto.

The project is expected to enhance local supply chains and strengthen the country's status as a global industrial hub, creating more than 1,500 jobs.

Kenya's government is leveraging its 2023–2027 Strategic Plan to attract foreign direct investment, with a goal of boosting FDI from $500 million to $10 billion by 2027. To achieve this, the country is implementing targeted reforms in economic zones, investment products, and stakeholder governance. It is also introducing tax incentives, such as removing VAT on exported services and providing relief for startups.

The Kenyan tire market was valued at approximately 3.952 billion shillings ($30.6 million) in the first quarter of 2024, up from 3.851 billion shillings in the fourth quarter of 2023. This growth is driven by a lack of local production. By manufacturing tires domestically, Kenya aims to reduce its reliance on imports and help narrow its trade deficit.

Lydie Mobio