The Ministry of Investments, Trade and Industry has hosted a German delegation from the Federal State of Bavaria with an aim of establishing mechanisms for duty-free and quota-free trade partnerships that will boost trade volumes and create opportunities for local producers. The delegation comprised government officials, Members of Parliament, the chamber of commerce, leaders from Germany and different investors whose discussions also target to increase Kenya’s agricultural exports to Germany and attract more investments.
Speaking on Tuesday during a press briefing, Investment, Trade and Industry Cabinet Secretary (CS) Salim Mvurya emphasized collaboration through the development of workforce skill, startup support and the expansion of trade access as the key pillars.
The CS noted that Germany and Kenya have good trade relations where Kenya exports agricultural products to Germany yearly and 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 and 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,” stated Mvurya.
The CS added that the discussion had led to an agreement that the chamber of commerce from the Bavarian state will work with the chamber of commerce in Kenya and with partners to have startups in areas that have innovation and also conduct business mentorship that will help in scaling up commerce in the country.
“The German delegation, from the Bavarian state in Germany, 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 on the opportunities that we already have with the Federal Republic of Germany in terms of the bilateral relations, and also leverage on the economic partnership agreement with the EU, to see how we can mobilize investments from the State of Bavaria,” Mvurya asserted.
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 they are really looking forward to deepen the collaboration since the partnership has made a good trade volume of about 45 million Euros annually and would increase 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 Mukwana underscored 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 intermediate products have an import duty of 10 percent, imported finished products for which we don’t have capacity is rated 25 percent import duty and imported finished products with capacity attracts an import duty of 35 percent,” Dr Mukhwana said.
Also present at the meeting included Dr. Petra Loibl, MDL Member of the Bavarian Parliament, Johann Müller, MDL Member of the Bavarian Parliament, AfD Parliamentary Group, Georg Schmidt, Deputy Head of Department for Internationalization, Location Policy, Invest in Bavaria, Silke Huber-Vogt, Head of the Vice Minister ‘s Office among other dignitaries.
By Sharon Atieno
