Kenya and Malaysia Strengthen Economic Ties Through Halal Industry, Palm Oil and Technology

Kenya is planning to strengthen its economic relationship with Malaysia by working together in key sectors such as the halal industry, palm oil, agro-processing, semiconductors, renewable energy and digital technology.

Kenya’s High Commissioner to Malaysia, Ekitela Moru, said the two countries are currently negotiating a memorandum of understanding (MoU) to develop Kenya’s halal industry. The agreement is expected to be finalised early this year. Kenya hopes to benefit from Malaysia’s global leadership in halal certification and production.

Under the proposed MoU, Kenya aims to build its capacity to produce and export halal-certified products, especially processed food. These products would be sold not only to Malaysia but also to the wider ASEAN region and the global halal market.

Moru said cooperation between the two countries has gained new momentum following Malaysian Prime Minister Anwar Ibrahim’s visit to Kenya in November last year. During the visit, Kenya and Malaysia signed agreements on air services, tourism, urban planning, infrastructure and technology investment. This was the first visit by a Malaysian prime minister to Kenya in 60 years, marking six decades of diplomatic relations.

Kenya is positioning itself as a regional hub for innovation, manufacturing, tourism and agricultural transformation. With a population of about 58 million, the country has a growing, market-based economy driven by agriculture, services and investment under its Vision 2030 development plan.

In the palm oil sector, Moru said the Malaysian Palm Oil Council plans to move its sub-Saharan Africa regional office from South Africa to Nairobi in early 2026. This move is expected to create jobs and boost Kenya’s role in the palm oil value chain.

Kenya wants Malaysia to export crude palm oil to Kenya for local refining and re-export as finished products. This would create employment and support related industries such as soap manufacturing. Currently, palm oil makes up about 90 per cent of Kenya’s imports from Malaysia.

Kenya is also encouraging Malaysian companies to invest in palm oil farming and processing, using Malaysia’s experience to build a sustainable palm oil industry.

Other priority areas include agriculture and agro-processing, where Kenya hopes to combine its natural resources with Malaysia’s technical expertise. In manufacturing, electronics and semiconductors, Kenya sees Malaysia as a key partner in building skills and industrial capacity.

The two countries are also exploring opportunities in renewable energy, fintech and the digital economy. Kenya’s mobile innovation strengths could be combined with Malaysia’s advanced digital infrastructure.

In 2024, Kenya became Malaysia’s third-largest trading partner in Africa, with trade reaching RM5.7 billion, an increase from the previous year. Kenya expects trade to continue growing as more agreements are signed and cooperation expands.

Moru said the strengthened partnership reflects South-South cooperation and is expected to bring shared growth, innovation and prosperity to both countries.

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