By MKT Correspondent
The Ministry of Investments, Trade, and Industry in Kenya hosted a German delegation from Bavaria to discuss establishing duty-free and quota-free trade partnerships aimed at boosting trade volumes and benefiting local producers.
The delegation included government officials, Members of Parliament, and business leaders, focusing on increasing Kenya’s agricultural exports to Germany and attracting investments.
Investment, Trade, and Industry Cabinet Secretary (CS) Salim Mvurya highlighted the importance of collaboration in workforce skills development, startup support, and expanding trade access.
He noted that in 2023, Kenya’s exports to Germany were valued at around Sh16 billion, primarily consisting of agricultural products like coffee, tea, cut flowers, and macadamia nuts. In contrast, imports from Germany totalled approximately Sh39 billion, highlighting a significant trade imbalance that the partnership aims to address.
“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 having 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 bilateral relations and also leverage on the economic partnership agreement with the EU, to see how we can mobilise investments from the State of Bavaria,” Mvurya asserted.
Mvurya emphasized the potential benefits of German companies setting up in Kenya, which would enhance local skills and certifications for workers.
The discussions also involved plans for the Bavarian chamber of commerce to collaborate with Kenya’s chamber to support startups and business mentorship.
Bavaria’s Vice Minister for Economic Affairs, Tobias Gotthardt, expressed enthusiasm for deepening collaboration, aiming to increase the annual trade volume from 45 million euros to 50 million euros through initiatives in startups and skilled worker programs.
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 per cent, imported finished products for which we don’t have capacity are rated 25 per cent import duty, and imported finished products with capacity attract an import duty of 35 percent,” Dr. Mukhwana said.