(Nairobi) – Malaysian businesses are being encouraged to invest in Kenya, focusing on the agriculture sector and halal industry, to strengthen ties between the two nations and tap into growing economic opportunities.
Malaysian High Commissioner to Kenya, Ruzaimi Mohamad, highlighted Kenya’s admiration for Malaysia’s industrialization success. While Malaysia has advanced significantly since gaining independence on August 31, 1957, Kenya, which gained independence on December 12, 1963, remains a predominantly agriculture-based economy.
In an interview during AirAsia X’s inaugural direct flight from Kuala Lumpur to Nairobi, Ruzaimi emphasized Kenya’s potential for Malaysian investors. He noted that Kenya’s vast arable land and low labor costs make it attractive for agricultural investments, though high transportation costs remain a challenge.
Kenya imports numerous Malaysian goods, including electrical and electronic products, machinery, and food items. In return, Malaysia sources Kenyan exports such as coffee, tea, vegetables, flowers, and fruits like avocado.
Ruzaimi also encouraged Malaysian companies to explore Kenya’s halal market, citing the country’s Muslim population, which constitutes 11% of its 56 million citizens. He added that halal products appeal to non-Muslims due to the rigorous standards applied during production, ensuring quality and safety.
Bilateral Trade: Key Figures
| Trade Indicator | 2023 | 2022 | Jan-Sept 2024 |
|---|---|---|---|
| Total Bilateral Trade | $1.20 billion (RM5.35 billion) | $1.18 billion (RM5.26 billion) | $765.5 million (RM3.42 billion) |
| Malaysia’s Exports to Kenya | Palm oil, petroleum products | Palm oil, petroleum products | Palm oil, petroleum products |
| Kenya’s Exports to Malaysia | Metal ore, agricultural products | Metal ore, agricultural products | Metal ore, agricultural products |
The bilateral trade between the two nations increased by 1.7% in 2023. Ruzaimi anticipates a further 10% growth due to stronger Kenyan purchasing power post-COVID-19 and improved connectivity through AirAsia X’s direct flights.
The direct flights, which cut travel time between Kuala Lumpur and Nairobi from nearly 15 hours to nine, are expected to attract more Malaysian tourists and students to Kenya. The High Commissioner noted that around 1,000 Kenyan students enroll in Malaysian universities annually, primarily in private institutions.
Kenya’s economy, located 7,128 kilometers from Malaysia, is largely agriculture-driven. In 2023, the agriculture sector accounted for 21.8% of Kenya’s GDP, while services (including tourism) and industry contributed 61.3% and 16.9%, respectively.
Ruzaimi expressed optimism that the ASEAN chairmanship Malaysia will host in 2025 could further enhance ties and create new opportunities for both countries.