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Kenya A driver of economic growth in East Africa
The Kenyan government has not yet managed to develop the economic potential of the country in way that is socially just and economically sustainable. More than a third of the population live in extreme poverty and youth unemployment is high. Other major challenges facing the country are the widespread corruption and deficiencies in governance.
At the same time, high national debts, also as a result of the Corona crisis, limit the government's ability to act. Inflation and price increases for food and fertilisers exacerbate the poverty situation. Kenya is strongly affected by the consequences of climate change; the extreme drought in the Horn of Africa is leading to a dramatic food situation in parts of the country: Up to 4.3 million people are acutely affected by hunger in Kenya.
In the current Human Development Index (HDI), Kenya ranks 152nd out of the 191 countries listed.
Germany and Kenya can look back on a long tradition of development cooperation. In fact, Germany is one of the most important donors for this East African country. The key objective of German programmes in Kenya is to get young people there into work. Cooperation between Kenya and Germany focuses on boosting the agricultural sector, sustainable economic growth and the use of renewable energies. In November 2022, a Climate and Development Partnership was agreed between Germany and Kenya, which aims to intensify cooperation in the areas of mitigation (especially through renewable energies, electric mobility) and adaptation (by improving the resilience of agricultural systems).
German development cooperation with Kenya
Germany is helping the Kenyan government to facilitate economic growth, achieve sustainable poverty reduction and eliminate social disparities.
During government negotiations in November 2020, the German government committed 117.5 million euros in new funding for Kenya. Of this amount, 79.5 million euros was earmarked for Financial Cooperation and 38 million euros for Technical Cooperation.
Furthermore, the BMZ is also providing funds under its special initiatives “Transformation of Agricultural and Food Systems” and “Displaced Persons and Host Countries”.
The following core areas of cooperation have been agreed upon with the Kenyan government:
- Sustainable economic development
- Renewable energy
The support that Germany provides is contingent on Kenya's making progress in its efforts to fight corruption. Because there were serious cases of corruption in the Kenyan health sector which were never resolved, Germany decided to discontinue its activities in the health sector as of 2018.