Germany ups hunt for opportunities in Kenya

President Uhuru Kenyatta meets former President of the Federal republic of Germany Dr Horst Kohler who called on him at State House Nairobi. PSCU

What you need to know:

  • The latest report By the Standard Chartered Bank released on Monday shows that more than half of the population in Kenya, Nigeria, Ghana, and India expect their personal finances to improve in the next five years, giving them increased disposable income.

German entrepreneurs led by their former president are in Nairobi in search of opportunities in a catch up game that has seen the East emerge as the biggest winner.

Former German President Horst Kohler who led the entrepreneurs at State House, Nairobi said there is increased awareness in Germany about the opportunities in Kenya.

"Dr Kohler said German entrepreneurs are choosing Kenya as their investment destination in the East African region due to its strategic position as the region’s economic hub," the Presidential Strategic Communication Unit said in a press statement.

In a country where big contracts have tended to end up with the Chinese, Europe's strongest economy is waking up late to the opportunities that India, Korea, Brazil have also been quick to spot.

However German has various existing interests in Kenya ranging from renewable energy, pharmaceutical sector to construction.

Minerals and oil discoveries and rising economic activities have seen increased interest by foreign companies in Africa forcing EU members to review what has been termed as a 'donor economy' relationship.

The latest report By the Standard Chartered Bank released on Monday shows that more than half of the population in Kenya, Nigeria, Ghana, and India expect their personal finances to improve in the next five years, giving them increased disposable income.

President Kenyatta told the entrepreneurs that his government is working together with the rest of the East Africa Community members to ensure the removal of barriers to trade so as to open up a larger market.

“As regional leaders, we meet after every two months to ensure that all protocols and MOUs signed between our countries, are operationalized and not kept on shelves,” the President said.

He said containers leaving the port of Mombasa to Kampala, which previously took 21 days, are now taking only four days to reach the destination. Those destined for Kigali take six days from the previous one month.

“The cost of transporting the containers to Kigali from the port of Mombasa has also significantly reduced from $3,500 to $1000. Due to the efficiency, at the port and along the highway, Rwanda saved Ksh. 0.5 billion in the last one year,” the President said.

Former Germany ambassador to Kenya Margit Hell Wig-Botte in 2012 hit out at government officials over what she termed as unfair award of contracts to China and neglect of European firms.

Kenya has shown unusual resilience in the midst of terror attacks that have seen the West issue successive travel advisories but yields on government papers have remained strong.