Kenya , Germany explore new trade avenues with emphasis on workforce skills and trade

SHARON ATIENO-KNA

The Ministry of Investments, Trade, and Industry is proposing the development of workforce skills, start-up support, and the expansion of trade access as key pillars in the bilateral relationship between Kenya and Germany. 

Investment, Trade, and Industry Cabinet Secretary (CS) Salim Mvurya emphasized the importance of collaboration between the two nations while hosting a German delegation from the Federal State of Bavaria. 

The strategic meeting aimed to establish mechanisms for duty- and quo ta-free trade partnerships that will boost trade volumes and create opportunities for local producers. 

The discussions also focused on strategies to increase Kenya’s agricultural exports to Germany and attract more investments.

The CS noted that Ger many and Kenya maintain strong trade relations, with Kenya exporting agricultural products to Germany annually.

He cited the year 2023, where the export value was around Sh16 billion, comprising mostly agricultural products such as coffee, tea, cut flowers, macadamia and other agricultural products. 

Mvurya observed that having German companies set up in Kenya will give skilled workers the right skills and right certification that enable them to qualify for placement in the German-owned companies. 

He at the same time noted that Kenya imports products from Germany to the tune of Sh39 billion, adding that currently the partnership favours the German trade. He further expressed the same trade likelihood to be favourable to Kenya through the opening up of the market further via the Bavarian Representative Office in Kenya. 

“We have agreed to further our engagement in the area of skilled workers since Germany has a very good program in technical training which should be scaled up in order to prepare German investors undertake investment in Kenya,” Mvurya stated. 

The CS added that the discussion had led to an agreement that the Bavarian State Chamber of Commerce will work with the Kenya Chamber of Commerce and with partners to have startups in areas that have innovation and also conduct business mentorship to help in scaling up commerce in the country.

“The German delega tion, from the Free State of Bavaria, led by the Vice Minister for Economic Affairs met with us and this discussion focuses on how the Bavarian State, the 16th largest state as well as has a big economy in Germany, and Kenya can leverage the opportunities that we already have with the Federal Republic of Germany in terms of the bilateral relations, and also leverage the economic partnership agreement with the EU, to see how we can mobilize investments from the Free State of Bavaria,” Mvurya said. 

Bavaria’s Vice Minister for Economic Affairs, Tobias Gotthardt, expressed strong support for fostering startups and enhancing free trade that aims to open new business opportunities for both countries. 

He noted that on the African Continent, Kenya is their strongest partner and added the State is re ally looking forward to deepen the collaboration since the partnership has made a good trade volume of about 45 million Euros annually and would in crease to 50 million Euros annually with regard to startups, skilled workers as well as deepen the Bavarian-Kenyan cooperation.

Meanwhile, Principal Secretary for Industry Dr. Juma Mukhwana under scored the import and export of the duty-free goods, highlighting the existence of four-band taxation structures. 

“All manufacturing equipment whether from Germany or anywhere else coming in for manufacturing purposes is duty free, including machinery for manufacturing and imported raw materials while the imported inter mediate products have an import duty of 10 per cent, imported finished products for which we do not have capacity is rated 25 per cent import duty and imported finished products with capacity attracts an import duty of 35 per cent,” Dr Mukhwana said. 

Also present at the meeting included Dr. Petra Loibl and Johann Müller who are MDL Members of the Bavarian Parliament, AfD Parliamentary Group, Georg Schmidt, Deputy Head of Department for Internationalization, Location Policy, Invest in Ba varia, Silke Huber-Vogt, Head of the Vice Minister ‘s Office among other dignitaries.