Kenya, Hungary strengthen bilateral relations to spur economic growth

Wangari Ndirangu-KNA

Kenya and Hungary have emphasized the importance of establishing a structured setting to enhance bilateral trade and economic ties between the two countries.

During the second Joint Economic and Technical Committee in Nairobi, representatives from both countries explored areas of cooperation including water management and irrigation, agricultural value addition, energy, trade and investment, high technology, and healthcare.

Other areas of discussion included higher education, youth affairs and creative economy, culture, humanitarian assistance, and international development.

During the meeting, the Principal Secretary State Department of Trade, Regina Ombam, acknowledged the long-lasting bilateral ties between Kenya and Hungary dating back to 1964. 

“We already partner in key areas of trade, investment, agriculture, education, health, and technology, among others. We have agreed to strengthen our bilateral relations in these areas to accelerate our economic growth and create additional job opportunities, thereby elevating our Bottom-Up Economic Transformation Agenda,” she said.

The PS added that the two nations will align their bilateral relations to the multilateral arrangements between the European Union and the East African Community.

“Principally, we have not been having very good volumes in terms of our trade between the two nations.

“Mostly, our trade has been more in the agricultural sector, our traditional goods of cut flowers, coffee, tea, but we are now looking at enhancing this through this cooperation by moving to more value-added kind of trade,” she said.

The PS explained that Hungary has been investing heavily in this country particularly in education with scholarships given to Kenyan students to study in the country.

She added that this kind of exchange program has made beneficiaries to understand technology and modern ways of doing things that enhance competitiveness in trade.

Echoing her remarks, Tristan Azbej, the Hungarian State Secretary for Foreign Affairs and Trade noted that there is much room for improving the trade volumes between Kenya and Hungary.

“We are offering Hungarian technology and expert know-how in technology-intensive industries. We are already witnessing some Hungarian investments in water, irrigation, and agriculture, and we expect to widen this sectoral spectrum,” he explained.

He said Hungary is also open to foreign direct investment from Kenya, citing its investment incentives, highly skilled labor force, and access to the European Union market under the Kenya-EU Economic Partnership Agreement.

“There are already Hungarian investments in the field of agriculture, irrigation, and water, and we are looking to widen that sectoral spectrum.

“We also have a Hungarian business delegation in Nairobi that has held successful business forums with Kenyan companies in the areas of agriculture, the water sector, ICT, cybersecurity, smart city solutions, and healthcare technology as well,” Azbej said.

He noted that the trade volume was just over 20 million US dollars’ worth on the price side last year, almost one-third (30 per cent) larger than the previous year.