Kenya has signed a memorandum of understanding with Malaysia to boost bilateral trade between the two countries.
The two countries signed the agreement through their respective trade organizations; Kenya National Chamber of Commerce and Industry and Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry at a Nairobi hotel on Wednesday.
Kenya National Chamber of Commerce and Industry President Richard Ngatia and his Kuala Lumpur counterpart Nivas Ragavan presided over the document’s signing during an event dubbed “Kenya – Malaysia Business Forum.”
The event was attended by High Commissioner of Kenya to Malaysia Francis Muhoro, High Commissioner of Malaysia to Kenya Ruzaimi bin Mohamad, Bomet Governor Barchok, Malaysian Exporters Association President Kabur Ibrahim and Investment Promotion PS Abubakar Abubakar.
Abubakar applauded the cordial relations Kenya and Malaysia had enjoyed since 1967 saying it had continued to broaden and deepen in all aspects of development.
He said though the two countries share deep historical, commercial and cultural ties, their trade and investments were yet to be connected in a meaningful way.
“Organizing a business forum presents a tremendous opportunity to harness the creative capacity of entrepreneurs in both regions to work together to solve common and pressing problems,” Abubakar said.
Abubakar said the trade volume between Kenya and Malaysia had been relatively small.
He said in 2021, the country’s exports to Malaysia were valued at approximately 93.78 US dollars while imports from Malaysia were 183.9 US dollars with a balance Trade of 919.47 US dollars in Malaysia's favour.
“In terms of investments, Malaysian companies have shown interest in investing in Kenya, particularly in the construction, energy, and agricultural sectors. The business forum will provide opportunities for linkages, partnerships for trade and investments from Malaysian companies,” Abubakar said.
Mohamad said partnership and collaboration between companies were essential elements in growing business as they were able to share their competitive advantages as they worked together towards their common shared goals and objectives.
“Over the years, Malaysia has become an integral part of the global supply chain, enabling the country to position itself as a leading exporter of quality products such as electrical and electronic products, chemicals and chemical products, medical disposables and devices, processed food, building materials, healthcare, education, outsourcing, information and communication technology and engineering services,” Mohamad said.
Mohamad said Kenya remains to be an import trading partner for Malaysia in the East and Central Africa region with total trade value growing by 2.3 per cent to 1,177.00 million US dollars during the year 2022 from 1, 150.0 million dollars in 2022.
Ngatia said there was a need to have a policy that protects investors both local and foreign.
He said through the MOU, they will be able to support the businesses, give timely information, mitigate any problems and advocate for business through the government so that they can formulate policies that are conducive for the business environment.
MyEvents International Africa director Peter Mutinda said the forum was meant to bring together investors from the two countries and tackle challenges faced in not only the country but Africa and Asia continents in matters of trade.
Mutinda said the main challenge in Africa was the unbalanced trade.
“We are net importers and we are trying to bring in Malaysians to come and see what they can import from Kenya and also helping enhance what they can bring to Kenya,” Mutinda said.
