This archive report was first published on 29 November 2019.
Published on November 29, 2019, a new survey by the Delegation of German Industry and Commerce for Eastern Africa (AHK Eastern Africa) in cooperation with the German Business Association in Kenya (GBA) has revealed a decline in optimism among German firms operating in Kenya.
The survey, which collected feedback from around 3,700 German companies, branches, and subsidiaries abroad, found that 62 per cent of the firms expect to get higher returns over the next 12 months, a lower percentage compared to 71 per cent in the Spring 2019 survey results.
According to the Autumn 2019 World Business Outlook Survey, interest in the expansion of the existing employee base has fallen to 38 per cent, down from 45 per cent.
The study noted that major risks within the Kenyan economy include declining demand for products and services (47 per cent up from 41 per cent), shortage of skilled labour (38.1 per cent up from 25 per cent), and lack of access to financing (38.1 per cent up from 16 per cent).
However, the report noted that the German business community in Kenya still sees many opportunities for bilateral trade relations and economic growth, including in employment. Over 57 per cent of responding companies, up from 42 per cent, indicated that their current situation is likely to remain constant.
Thomas Wimmer, Deputy Ambassador and Head of Economic Affairs at the German Embassy in Nairobi, said, “The Kenyan market has demonstrated a great propensity for trade relations. We continue to witness an eagerness to find and establish strong links locally and abroad from this market.”
Maren Diale-Schellschmidt, Delegate of German Industry for Eastern Africa, added, “Despite the challenges, Kenya continues to be a very attractive partner for German companies looking to form business relations abroad. In the past year, we as AHK Eastern Africa have seen increased frequency in business delegations and fact-finding missions seeking to explore the country.”
