Kenya A driver of economic growth in East Africa
Kenya is a driving economic force in East Africa and also plays an important role in the region in security policy terms. Furthermore, the country takes an active role in political processes both in the region and internationally, for example under the umbrella of the United Nations, the African Union and the East African Community. As at December 2020, more than 500,000 refugees, most of whom had fled the conflict-stricken neighbours Somalia and South Sudan, were registered on Kenya's territory.
The Kenyan government has not yet managed to develop the economic potential of the country in way that is socially just and ecologically 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.
In the current Human Development Index (HDI), Kenya ranks 143rd out of the 189 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.
German development cooperation with Kenya
Germany is helping the Kenyan government to facilitate economic growth, achieve sustainable poverty reduction and eliminate social disparities.
Kenya is an important partner in the work to implement the Marshall Plan with Africa initiated by the Federal Ministry for Economic Cooperation and Development (BMZ) in 2017. As a consequence of the Marshall Plan, Germany in 2018 redirected some of its development cooperation activities and is now focusing on the overarching goal of helping to create job opportunities for young people.
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 "ONE WORLD – No Hunger" and "Tackling the root causes of displacement, reintegrating refugees".
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.