€46.85 million initiative launched to modernise Kenya’s Technical and Vocational Education and Training (TVET) sector./PHOTO Courtesy
France, Germany and the European Union have launched a €46.85 million (approximately Kshs. 7.2 billion) initiative to modernise Kenya’s Technical and Vocational Education and Training (TVET) sector, in a move aimed at equipping young people with skills suited to a fast-evolving digital economy.
The programme, signed in December 2025, brings together the Agence Française de Développement (AFD), KfW Development Bank on behalf of the German Government, and the European Union (EU), in partnership with the Government of Kenya.
The financing agreements were formally exchanged at a high-level ceremony.
H.E. Henriette Geiger, EU Ambassador to Kenya, said the initiative reflects Europe’s broader Global Gateway strategy.
“Investing in digital skills is one of the most powerful investments we can make in people and in the future. Through this partnership, the European Union and its Member States are supporting Kenya to modernise its TVET system, harness digitalisation and ensure that young people are equipped with skills that match the realities of today’s and tomorrow’s digital economy.”
Kenya’s youthful demographic profile underscores the urgency of the intervention. With a median age of 20.1 years, nearly one million young people enter the labour market annually.
However, persistent mismatches between industry demands and available skills have constrained employment prospects and limited access to sustainable careers.
The new funding package is structured as a blended financing arrangement.
It includes a €28 million loan to the National Treasury from KfW, funded by the German Government through the Federal Ministry for Economic Cooperation and Development (BMZ); a €10 million grant from the French Government through AFD; and an €8.85 million grant from the EU.
The programme will establish 10 Centres of Excellence in digitally intensive sectors, equip up to 50 additional TVET institutions with modern digital tools, and provide foundational digital infrastructure to selected institutions nationwide.
It will also support the further rollout of Competency-Based Education and Training (CBET) frameworks and expand high-quality digital learning services.
Importantly, scholarships targeting women and marginalised groups will be introduced to promote inclusive access to digital skills development.
Éléonore Caroit, French Minister Delegate for Francophonie, International Partnerships and French Nationals Abroad, described the project as a reflection of coordinated European cooperation.
“France is proud to stand with Kenya in building a strong, inclusive and modern TVET system.This initiative reflects the strength of European cooperation. By pooling resources and expertise, AFD, KfW and the EU are helping ensure that technical and vocational education and training in Kenya responds directly to labour market needs. Together we are investing in the future of our youth and in a strong partnership between our countries.”
KfW will serve as lead financier during the implementation phase.
The initiative is aligned with the EU’s Global Gateway strategy, which aims to mobilise €300 billion globally by 2027 to support sustainable, green, and digital transitions.
It also reflects the broader “Team Europe” approach, under which EU Member States and institutions coordinate development financing to increase impact and coherence.
Alexander Fierley, German Deputy Ambassador to Kenya, emphasised Germany’s longstanding collaboration with Kenya in the education sector.
“Germany has been successfully supporting the Kenyan TVET sector for decades. With this new project, which is being implemented by KFW, we are joining forces with France and the European Union to boost high-quality technical and vocational education in Kenya by introducing a modern, digitalized technical education. This initiative will not only improve employment opportunities for Kenyan youth but also support the competitiveness of young Kenyans aspiring to pursue careers in Germany or elsewhere in Europe.”
For Kenya, the investment is expected to strengthen institutional capacity, enhance governance standards in TVET institutions, and bridge the skills gap that continues to hinder youth employment, positioning the sector as a cornerstone of the country’s digital and economic transformation.
