Kenya To Deepen Economic Linkages With Malaysia Through Halal Sector, Palm Oil, Agro-processing – Envoy

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Jan 4 (Bernama) – 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, said Malaysia and Kenya were currently negotiating a memorandum of understanding (MoU) to grow the halal industry in Kenya, with both sides hoping to firm up an agreement by early this year.

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He said the proposed MoU seeks to leverage Malaysia’s experience in the halal industry and certification, and build Kenya’s capacity to export halal products, not only to Malaysia but also to the ASEAN region and potentially the lucrative global market.

“Malaysia is a global leader in halal certification and the halal industry, with regional distribution networks across ASEAN (and) Kenya can leverage these factors to expand its exports of processed food,” he told Bernama recently.

Moru said the expansion of trade between Kenya and Malaysia was rooted in economic cooperation and complementary strengths, which have taken on added urgency following Prime Minister Datuk Seri Anwar Ibrahim’s visit to the African country last November.

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During Anwar’s visit, the two countries firmed up agreements on air services, tourism, urban planning as well as investments in infrastructure and technology.

Anwar’s visit, the first by a Malaysian prime minister in 60 years marking 60 years of diplomatic relations, has injected new momentum into Kenya-Malaysia cooperation as Nairobi positions itself as a regional hub for innovation, manufacturing, tourism and agricultural transformation.

Kenya, with a population of about 58 million, has a diversified, market-based system serving as a regional financial and transport hub, driven by services, agriculture including tea and horticulture as well as strong investment, with goals under ‘Vision 2030’ to achieve upper-middle-income status through sectors like digital tech, housing and healthcare.

On the cooperation in palm oil, Moru said the Malaysian Palm Oil Council (MPOC) plans to relocate its regional palm oil office for sub-Saharan Africa from South Africa to Nairobi, Kenya in the first quarter of 2026, a move likely to create more jobs in the country.

“Kenya would like to encourage a situation where Malaysia brings in crude palm oil, which is then refined in Kenya for re-export as downstream products.

“This would not only create jobs but also generate by-products, such as soap, considering that 90 per cent of our imports from Malaysia is palm oil,” he added.

Besides this, Kenya is looking to develop a sustainable palm oil value chain by tapping into Malaysia’s experience and expertise in the sector.

To this end, the African country is encouraging Malaysian companies to invest in Kenya, particularly in cultivating oil palm trees for edible products and other palm-based products.

Kenya has also identified several sectors that will benefit from Anwar’s decision to give Kenyan businesses preferential treatment based on friendship and strong trade potential, with agriculture and agro-processing being key areas expected to draw on Malaysia's expertise and Kenya's natural and human resources.

Touching on the manufacturing and high-tech industries, including electronics and semiconductors, Moru said Malaysia's experience could help accelerate Kenya's industrialisation, including in the renewable energy sector.

The bilateral cooperation could leverage Kenya's natural resources and Malaysia's technical expertise, he said.

He reckoned there were also growth opportunities in the digital economy and fintech sector by combining Kenya's innovative mobile solutions with Malaysia's advanced digital infrastructure

“Kenya-Malaysia partnership in semiconductor manufacturing is not about transferring technology, but instead is about building industrial capability for Kenya to accelerate skills development and entry into advanced manufacturing, while for Malaysia, it is an opportunity to expand markets, diversify and strengthen the supply chain resilience.

“Together, this reflects a forward-looking model based on South-South cooperation, that can generate sustainable growth, innovation and shared prosperity for both countries,” he said.

In 2024, Kenya became Malaysia’s third-largest trading partner in Africa, with trade reaching RM5.7 billion, up 1.2 per cent from RM5.51 billion in the preceding year.

Looking ahead, he said Kenya expects the trade relationship to continue its positive momentum driven by enhanced market access, trade facilitation and sectoral cooperation in agriculture, manufacturing, infrastructure, information technology and tourism.

“With the invigorated engagements, both at the government and the private sector levels and the conclusion and signing of MoU and trade agreements, we expect the people-to-people engagements and bilateral trade to grow even further,” he said.

-- BERNAMA