Kenya and Germany will prioritise the elimination of non-tariff barriers (NTBs) to boost trade.
The move, the two countries said, will reduce the costs of business and ease the movement of goods and services.
President William Ruto explained that the removal of NTBs will also enhance investments by German businesses in Kenya.
“This will improve the balance of trade that is currently in favour of Germany,” he said.
He made the remarks on Monday when he met President of Germany Dr. Frank-Walter Steinmeier at Schloss Bellevue, Berlin.
The two leaders pledged to strike a deeper and broader economic cooperation for the prosperity of their countries.
Earlier at Potsdamer Platz, Dr. Ruto invited German businessmen to invest in Kenya’s micro, small and medium-sized enterprises.
He said Kenya stands to benefit from the world’s most experienced, organised and resourced German establishments.
“The backbone of the German economy, generating at least 60 per cent of jobs,” he observed.
He made the remarks when he met Dr. Markus Jerger, the Chairman of Der Mittelstand-German Association of Small and Medium-Sized Businesses (BVMW).
According to Dr Jerger, BVMW represents the interests of more than 3.3 million individual enterprises in the country.
The President noted that the Government is committed — under its Bottom-Up Economic Transformation Agenda — to supporting small enterprises to blossom.
“That is why we have put more than Sh50 Billion in the Hustler Fund to provide affordable credit to millions of Kenyans who depend on the MSME sector for a living.”
Dr. Jerger noted that there are huge opportunities “for us in Kenya’s value addition programme”.
“We can invest in cold storage technology to reduce post-harvest losses. We are alresdy doing it in Senegal,” he said.
The rallying call to German multinationals to put their resources in Kenya was emphasised during the Germany-Kenya Business Forum at Haus der Wirtschaft in Berlin.
The President argued that undergone huge transformation that promises businesses a return on their investment.
He added that Kenya is stable with a vibrant and friendly environment to trade and invest.
“We have a robust environment with an open and business-friendly regulatory regime,” he said.
This, he noted, has been underpinned by a strong reputation for the rule of law.
He told the Forum that Kenya is ready to partner with businesses, especially in the areas of renewable energy, infrastructure, digital economy, housing and agriculture.
“Investing in Kenya will offer enterprises access to the EAC, COMESA, the Tripartite Free Trade Area and AfCFTA markets of 1.4 billion people and a combined GDP of $3.4 Trillion,” he said.