Kenya and Germany have signed a new development cooperation agreement worth 7.8 billion Kenyan shillings(approximately US$60.28 million) for the 2026–2028 period. The announcement was made by Kenya's Principal Secretary to the National Treasury, Chris Kiptoo.
The funding will support several priority sectors, including private sector development, digital transformation, renewable energy, sustainable agriculture, vocational training, and governance improvements.
Berlin also announced that an additional 4 billion Kenyan shillings in financing for the energy sector could be approved in the coming weeks, further strengthening the two countries' shared ambitions for the energy transition.
The two governments have also agreed to extend the Digital Transformation Center (DTC II) programme until 2029. The initiative will promote the development of ethical artificial intelligence, strengthen digital governance, enhance data protection, and support the deployment of digital public infrastructure and open-source solutions.
Nairobi and Berlin also aim to position Kenya as a regional digital services hub, with a particular focus on financial technology (FinTech) and business process outsourcing (BPO)—two sectors regarded as major drivers of skilled job creation.
In the energy sector, the partnership will accelerate investments in renewable energy, promote electric mobility and battery storage across East Africa, and establish a regional centre of excellence for green skills.
The cooperation also extends to skills development and labour mobility. Both governments will strengthen technical and vocational education and training programmes, complemented by language courses and internationally recognised certifications to facilitate Kenyan workers' access to the German labour market.
On the trade front, Kenya has committed to reducing non-tariff barriers, improving market access, and lowering logistics costs to boost exports of high-value agricultural products, particularly coffee, cut flowers, and nuts. The agreement also seeks to encourage further investment by German companies operating in the country.
This new partnership comes amid growing economic ties between Nairobi and Berlin. More than 120 German companies are currently operating in Kenya, while bilateral trade increased by 23% in 2025, reaching nearly €590 million. The two countries had already strengthened their relationship in 2024 through an agreement on the migration of skilled workers and several initiatives in the fields of digital technology, renewable energy, and vocational training.