Last week, Kenya hosted the inaugural Germany-African Business Summit, a forum that is the brainchild of Germany, the fourth-largest economy in the world and the biggest one in Europe.
Germany, whose economy is valued at $3.4 trillion (Sh348 trillion), is looking to tap into opportunities in Kenya, and signed a declaration that will lead to the foundation of the Eastern African German University of Applied Sciences in Kenya.
This week, we take a closer look at Germany’s economy when compared to Kenya’s.
Last year, Germany recorded a slower annual economic growth rate at 1.5 per cent, compared to Kenya’s 5 per cent.
“Annual growth rate in Germany averaged 1.37 per cent from 1992 until 2016, reaching an all-time high of six per cent in the first quarter of 2011 and a record low of negative 7.90 per cent in the second quarter of 2009,” notes Trading Economics, an online platform that provides historical data and economic forecasts.
The cost of living in Germany is 5.9 times higher than that of Kenya, according to Nation Master, a statistical body that facilitates comparisons of public data. This means that while the average monthly disposable salary of a Kenyan is $481.21 (Sh49,800), a person living in Germany spends $2,851.85 (Sh295,221). According to the data, the average Kenyan earns 21 per cent less than a German.