Kenya has secured a Ksh7.8 billion development cooperation package from Germany for the 2026–2028 period following the conclusion of the Kenya–Germany Biennial Government-to-Government Negotiations on Development Cooperation in Berlin.

National Treasury Principal Secretary Chris Kiptoo announced the agreement on Friday, June 26, 2026, saying the funding will support priority programmes in private sector development, trade and investment, digital transformation, technical and vocational education and training (TVET), labour mobility, renewable energy and e-mobility, climate action, irrigation, climate-smart agriculture, food systems and good governance.

Germany also indicated that an additional KSh 4 billion for the energy sector will be considered in the coming weeks.

At the close of the negotiations, Kiptoo and his counterpart, Bärbel Kofler, Parliamentary State Secretary at Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), signed the Summary Record reaffirming the two countries’ commitment to strengthening their development partnership.

Development priorities

In a statement shared on X, PS Kiptoo welcomed Germany’s continued support and highlighted new opportunities identified during the negotiations.

“We appreciate the Government of Germany for its commitment of Ksh 7.8 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. We also welcome the indication that an additional Ksh 4 billion for the energy sector will be considered in the coming weeks.”

He added that both countries had identified opportunities to deepen cooperation in agribusiness and market access, labour mobility through technical skills and expanded language training, digitalisation and innovation, investment and tendering, renewable energy, e-mobility, fintech and the Business Process Outsourcing (BPO) sector.

The PS said Kenya remains committed to addressing barriers related to market access, regulatory frameworks and logistics to unlock the identified opportunities.

Growing trade ties

The latest agreement follows stronger economic 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 about Ksh 26.2 billion (USD 203 million) in 2021 to Ksh 45.4 billion (USD 352 million) in 2025.

The growth was highlighted during the Kenya–Germany Business Day held in Berlin ahead of the bilateral negotiations.

During the forum, several Memoranda of Understanding (MoUs) were signed to support digital skills development, manufacturing, renewable energy, climate-smart agriculture, digital innovation, energy storage and job creation.

High-level engagements

The Kenyan delegation was led by Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui and included senior principal secretaries from the 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.

The Berlin negotiations build on earlier bilateral engagements held in Nairobi in November 2024 and subsequent high-level meetings between the two governments. Germany remains one of Kenya’s key European trading partners, importing products such as cut flowers, horticultural produce and coffee while exporting machinery, industrial equipment and technology to Kenya.