Kenya has secured a Ksh7.8 billion development cooperation package from Germany for the 2026–2028 period, further strengthening economic and development ties between the two countries.
The agreement was reached following the conclusion of the Kenya–Germany Biennial Government-to-Government Negotiations on Development Cooperation held in Berlin.
National Treasury Principal Secretary Dr Chris Kiptoo said the new funding will support key priority areas including private sector development, trade and investment, digital transformation, technical and vocational education and training, labour mobility, renewable energy, e-mobility, climate action, irrigation, climate-smart agriculture, food systems and good governance.
Germany has also indicated that an additional Ksh4 billion for Kenya’s energy sector will be considered in the coming weeks.
At the close of the negotiations, Dr Kiptoo and Bärbel Kofler, Parliamentary State Secretary at Germany’s Federal Ministry for Economic Cooperation and Development, signed the Summary Record reaffirming both countries’ commitment to deepening their development partnership.
Dr Kiptoo welcomed Germany’s continued support, noting that the cooperation package comes at a time when Kenya is seeking to expand trade, unlock investment opportunities and create jobs through skills development and industrial transformation.
“We appreciate the Government of Germany for its commitment of Ksh7.8 billion in new Technical and Financial Cooperation for the period 2026–2028 to support priority programmes in private sector development, trade and investment, digital transformation, technical and vocational education and labour mobility, renewable energy and e-mobility, climate action, irrigation, climate-smart agriculture, food systems and good governance,” he said.
He added that Kenya welcomed Germany’s indication that an additional Ksh4 billion for the energy sector will be considered in the coming weeks.
The negotiations also identified new areas of cooperation, including agribusiness and market access, technical skills development, expanded German language training, digitalisation, innovation, investment, tendering, renewable energy, e-mobility, fintech and the Business Process Outsourcing sector.
According to Dr Kiptoo, Kenya remains committed to addressing barriers around market access, regulatory frameworks and logistics in order to unlock the full potential of the partnership.
The agreement comes against the backdrop of growing trade relations between the two countries. Kenya’s exports to Germany have risen by more than 73 percent over the last four years, from about Ksh26.2 billion in 2021 to Ksh45.4 billion in 2025.
The growth was highlighted during the Kenya–Germany Business Day held in Berlin ahead of the bilateral negotiations, where Kenyan and German officials engaged investors and private sector players on emerging opportunities in trade, manufacturing, clean energy and digital innovation.
Several Memoranda of Understanding were also signed during the forum to support digital skills development, manufacturing, renewable energy, climate-smart agriculture, digital innovation, energy storage and job creation.
The Kenyan delegation was led by Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui and included senior officials from the National Treasury, Trade, Irrigation and ICT ministries.
They held discussions with German officials led by Parliamentary State Secretaries Stefan Rouenhoff and Dr Bärbel Kofler.
More than 120 German companies currently operate in Kenya, with many using the country as a regional hub for Sub-Saharan Africa.
Germany remains one of Kenya’s key trading partners in Europe, importing products such as cut flowers, horticultural produce and coffee, while exporting machinery, industrial equipment and technology to Kenya.
The latest Berlin negotiations build on previous bilateral engagements held in Nairobi in November 2024 and subsequent high-level meetings between the two governments.
For Kenya, the new cooperation package is expected to support economic transformation by promoting skills development, renewable energy, climate resilience, digital innovation and private sector-led growth.