Kenya has secured a KSh7.8 billion development cooperation package from Germany to support key economic programmes over the 2026 – 2028 period, strengthening the long-standing partnership between the two countries.
The funding was announced after the Kenya- Germany biennial government-to-government development cooperation negotiations held in berlin, where both governments reaffirmed their commitment to expanding economic cooperation and sustainable development.
National treasury principal secretary Chris Kiptoo said the financial and technical support will be directed towards programmes that promote economic growth, climate resilience and job creation.
According to PS Kiptoo, the package will finance projects in private sector development, trade and investment, digital transformation, technical and vocational education and training (TVET) renewable energy, e-mobility, irrigation, climate-smart agriculture, food systems and good governance.
The funding will also support labour mobility initiatives by enhancing technical skills and language training for Kenyan workers seeking opportunities abroad. Germany is also considering an additional sh4 billion financing package for Kenya’s energy sector, with a final decision expected in the coming weeks. The agreement was formalized after kiptoo and Germany’s parliamentary state secretary at the federal ministry for economic cooperation and development (BMZ), Dr Barbel Kofler, signed the summary record concluding the bilateral negotiations. Kiptoo welcomed the new funding, saying it would help accelerate Kenya’s development agenda while improving livelihoods and creating employment opportunities.
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Beyond the financial package, Kenya and Germany agreed to strengthen cooperation in strategic sectors including agribusiness, digital innovation, renewable energy, financial technology, investment promotion, manufacturing, public procurement and the rapidly growing business process outsourcing (BPO) industry. The treasury principal secretary said the government remains committed to addressing regulatory and market access challenges that have slowed trade and investment between the two countries.
The latest negotiations also reflected growing commercial relations between Kenya and Germany. Kenya’s exports to Germany have increased by more than 73 per cent over the past four years, rising from approximately sh26.2 billion in 2021 to sh45.4 billion in 2025. Germany remains one of Kenya’s largest European trading partners, importing products such as cut flowers, coffee and other horticultural produce while exporting machinery, industrial equipment and technology to Kenya.
The partnership was further strengthened during the Kenya – Germany business day held in berlin, where government officials and business leaders explored new investment opportunities. Several memoranda of understanding were signed covering digital skills development, renewable energy, manufacturing, climate-smart agriculture, energy storage, digital innovation and job creation.
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The Kenyan delegation was led by investments, trade and industry cabinet secretary lee kinyanjui and included senior officials from the national treasury, ICT, trade and irrigation ministries. They held discussions with German government representatives led by parliamentary state secretaries stefan rouenhoff and dr barbel kofler. According to the national treasury, more than 120 German companies currently operate in Kenya, with many using Nairobi as their regional headquarters for sub-Saharan Africa, reinforcing the country’s position as a key investment hub in the region.
The latest agreement builds on decades of cooperation between Kenya and Germany, which dates back to the 1960s. It also follows the previous round of bilateral consultations held in Nairobi in November 2024, as both countries continue to deepen their economic and development partnership.
By Jonathan Mwinzi
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