KUALA LUMPUR: Malaysian businesses are encouraged to explore investment opportunities in Kenya, especially in the agriculture sector, which requires smart farming techniques and industrialised know-how, as well as in the halal industry. Malaysian High Commissioner to Kenya Ruzaimi Mohamad highlighted these opportunities during a recent event in Nairobi.
According to BERNAMA News Agency, Ruzaimi emphasized Kenya’s admiration for Malaysia’s successful industrial transformation, contrasting it with Kenya’s agriculture-based economy. Despite both countries gaining independence from British rule around the same period, Malaysia on August 31, 1957, and Kenya on December 12, 1963, their economic paths have diverged significantly. Malaysia exports manufactured products like electrical and electronics items, machinery, and food products to Kenya, while Kenya sends coffee, tea, vegetables, flowers, and fruits such as avocados to Malaysia.
Ruzaimi noted the safety and potential benefits of investing in Kenya’s agricul
ture sector, citing the country’s vast land and low labor costs, although transportation costs remain a challenge. His remarks coincided with the arrival of AirAsia X Bhd’s inaugural direct flight from Kuala Lumpur to Nairobi, which could further facilitate trade and investment between the two nations.
In the halal industry, Ruzaimi pointed out the market potential in Kenya due to its significant Muslim population, which comprises about 11% of the total population of around 56 million. He remarked that halal products appeal to both Muslims and non-Muslims due to their quality assurance.
Statistics from the Malaysia External Trade Development Corporation’s (MATRADE) Kenyan office show that bilateral trade between Malaysia and Kenya increased by 1.70% to US$1.20 billion in 2023 from US$1.18 billion in 2022. The trade volume for January to September 2024 stood at US$765.5 million, with Malaysia exporting primarily palm oil and petroleum products, while importing metal ore/scrap and agricultural products from K
enya.
Ruzaimi is optimistic that the new direct flights, alongside Kenyans’ stronger purchasing power post-COVID-19, could boost the trade between Malaysia and Kenya by 10%. He also expects the flights to encourage more travel and educational exchanges, noting that around 1,000 Kenyan students enroll in Malaysian tertiary institutions each year.
Located in East Africa, Kenya is 7,128 kilometers from Malaysia and its economy is predominantly agricultural, contributing 21.8% to its GDP in 2023. The service sector, including tourism, accounted for 61.3% of GDP, while industry-related activities made up 16.9%, as per the Kenya National Bureau of Statistics’ 2024 Economic Survey report.