Kenya Courts California Investors, Set to Host UC Davis-Backed Transport Research Hub – The Kenyan Wall Street

Kenya is set to host a new Africa Center of Excellence in Sustainable Transport, headquartered in Nairobi and supported by the University of California, Davis.

• The center will focus on electric mobility, including two- and three-wheelers, buses, trucks, and passenger cars, while extending research into freight logistics, cycling, and alternative fuels for aviation and maritime.
• UC Davis’s Institute of Transportation Studies operates with an annual budget of US$26.9 million and partnerships with industry, governments, and foundations, suggesting financing will rely on external grants, private-sector participation, and potential government contributions.
• The announcement was made during the California–Africa Climate and Economic Partnership Forum in Nairobi, a two-day meeting between Kenyan leaders and a California delegation to advance green investment and trade.

Kenya is using the partnership to court California investors in climate-related projects, pitching opportunities in renewable energy, e-mobility, and green building. Key government officials highlighted that the country has committed to cutting greenhouse gas emissions by 35% by 2035 under the Paris Agreement and is seeking capital investment for solar generation and sustainable urbanization.

Moreover, the country accounts for roughly a quarter of Africa’s carbon credits and has 170 active carbon projects. Officials estimate the country needs US$67 billion by 2030 to meet its emissions targets, including reductions in transport and industry. The credits are already attracting global buyers such as Gucci, Microsoft, and Delta Airlines. With potential to deliver 450 million tonnes of credits by 2030, Kenya is seeking financing for feasibility studies and large-scale implementation.

The Kenya Association of Manufacturers (KAM) executives pitched opportunities in e-mobility assembly, pharmaceuticals, and energy efficiency. Meanwhile, Special Economic Zones (SEZs) were presented as another investment channel. Kenya has attracted US$7 billion in commitments across SEZs in sectors including pharmaceuticals, data centers, and business outsourcing.

For the Californian delegation, the visit was framed as an opportunity to expand business ties beyond transport. Delegates signaled interest in climate investment opportunities that can scale regionally, particularly in e-mobility, artificial intelligence, robotics, and venture capital.

Kenyan officials underscored that the broader goal is to make the country a hub for green investment in Africa. With transport already accounting for 11.4% of GDP, the new research center in Nairobi is intended as a cornerstone in building that position.