Nairobi: The east African country of Kenya is set to elevate economic linkages with Malaysia through strategic partnerships in the halal industry, palm oil and agro-processing, semi-conductors and renewable energy sectors which will boost trade, investments and regional market access. Kenya's High Commissioner to Malaysia, Ekitela Moru, highlighted ongoing negotiations aimed at finalizing a memorandum of understanding (MoU) to expand the halal industry in Kenya, leveraging Malaysia's expertise in halal certification.
According to BERNAMA News Agency, the proposed MoU aims to build Kenya's capacity to export halal products not only to Malaysia but also to the broader ASEAN region and potentially the global market. Malaysia's leadership in halal certification and its regional distribution networks present an opportunity for Kenya to enhance its exports of processed food.
Moru emphasized that the expansion of trade between Kenya and Malaysia is rooted in economic cooperation and complementary strengths. This effort has gained momentum following Malaysian Prime Minister Datuk Seri Anwar Ibrahim's visit to Kenya last November, which resulted in agreements on air services, tourism, urban planning, and infrastructure investments.
Anwar's visit, marking 60 years of diplomatic relations and being the first by a Malaysian prime minister in six decades, has reinvigorated Kenya-Malaysia cooperation. Nairobi sees itself as a regional hub for innovation, manufacturing, tourism, and agricultural transformation.
Kenya, with its market-based economy and strategic position as a regional financial and transport hub, is pursuing its Vision 2030 goals to achieve upper-middle-income status through sectors like digital technology, housing, and healthcare.
On the cooperation in palm oil, Moru noted that the Malaysian Palm Oil Council (MPOC) plans to relocate its regional palm oil office for sub-Saharan Africa to Nairobi by the first quarter of 2026, a move expected to create jobs in Kenya. Kenya aims to refine crude palm oil imported from Malaysia for re-export, generating by-products like soap and enhancing job creation.
In addition, Kenya seeks to develop a sustainable palm oil value chain with Malaysia's expertise and is encouraging Malaysian investments in oil palm cultivation for edible and other palm-based products.
Kenya is also looking to capitalize on Malaysia's preferential treatment of Kenyan businesses, focusing on agriculture and agro-processing. Moru highlighted Malaysia's potential role in accelerating Kenya's industrialization in sectors like electronics, semiconductors, and renewable energy.
Bilateral cooperation is expected to leverage Kenya's natural resources and Malaysia's technical prowess. Opportunities also exist in the digital economy and fintech sector by merging Kenya's mobile solutions with Malaysia's digital infrastructure.
Moru stated that the Kenya-Malaysia partnership in semiconductor manufacturing aims to build Kenya's industrial capability, fostering skills development and entry into advanced manufacturing, while Malaysia can expand its markets and strengthen supply chain resilience.
In 2024, trade between Kenya and Malaysia reached RM5.7 billion, making Kenya Malaysia's third-largest trading partner in Africa. Looking ahead, Kenya anticipates continued positive trade momentum driven by enhanced market access, trade facilitation, and sectoral cooperation in agriculture, manufacturing, infrastructure, information technology, and tourism.
Moru expressed optimism that with invigorated engagements at governmental and private sector levels, and the finalization of MoUs and trade agreements, people-to-people engagements and bilateral trade will grow further.