Kenya and Iran on Wednesday signed five memoranda of understanding for development.
President William Ruto and Iran's President Ebrahim Raisi witnessed the signing.
They include MoU on cooperation in information, communication and technology, fisheries, animal health and livestock Production and Investment Promotion.
Ruto said the memoranda will enhance and further deepen bilateral relations for sustainable growth and development between the two countries.
"I thank President Raisi for the tremendous honour of this visit and for the opportunity it has afforded us to undertake fruitful bilateral engagements," he said.
He said the country is committed to advancing and enhancing further engagement with Iran.
Ruto said the partnership with Iran is an affirmation of the strong bond the people and government of Kenya share with the people and the government of Iran.
The President said that Iran and Kenya will set up a motor vehicle assembly plant in Mombasa.
He said the vehicles have been given the Swahili name "Kifaru".
"His Excellency Raisi conveyed to me information that will be good news for stakeholders in our mechanical and automotive sectors including dealers, engineers technicians and other workers," Ruto said.
"Iran's intention is to set up a motor vehicle assembly plant in Mombasa to manufacture an indigenous Iranian vehicle that has been given the Kiswahili name Kifaru. I am confident the project is unstoppable as this name suggests."
President Raisi is in Kenya for talks aimed at strengthening cooperation between the two countries.
He arrived in the country Tuesday evening for an official visit.
