Labour Mobility Pact Between Germany and Kenya: Pathway to Prosperity or Perilous Journey?

Published on 24th September 2024

Rethinking Labour Mobility in the Digital Age

It can be hypothesised that the new attention-grabbing labour mobility agreement between Germany and Kenya, while offering immediate relief to both countries — Germany’s ageing workforce and Kenya’s youth unemployment crisis — may ultimately hinder Kenya’s long-term development by exacerbating brain drain. However, if properly managed, it could also promote brain circulation, fostering skills transfer and capacity building that benefits both nations in the long run.

As a central thesis, it can be stated that the recent labour mobility pact between Germany and Kenya opens the door to significant opportunities for both nations but raises critical questions about its impact on Kenya’s domestic labour market and long-term development. This article explores whether the agreement will serve as a bridge to prosperity for Kenya’s youth or perpetuate a cycle of brain drain, and further examines the potential for brain circulation, remotopia, and sustainable development in an increasingly digitally connected and borderless global labour market.

In the new world of work with an increasing share of digital jobs, the key question worth asking is, “For a given job, how does physical presence compare to virtual presence in the changing labour market and workforce productivity equation in a new digitally connected world realising increasing global awareness of sustainable development goals?”

Made in Germany? Why, What, Where, When, and How?

What comes to mind when you think of Germany? Perhaps it is the towering figures of great philosophers, scientists, inventors, explorers, and poets, the likes of Immanuel Kant, Carl Friedrich Gauss, Albert Einstein, Karl Benz, Krapf and Rebmann, Alexander von Humboldt, or Johann Wolfgang von Goethe. Maybe it is the Berlin Wall, a symbol of division and reunification, or the precision engineering that gave us brands like Mercedes-Benz and the renowned suspension railway in Wuppertal.

Could it be the catchy slogans promoting Germany’s work culture, education, and engineering prowess, such as “Land der Ideen” (Land of Ideas), or its brand of luxury cars whose slogans range from “Engineered to move the human spirit” or “The best or nothing” for Mercedes Benz, “Truth in Engineering” for Audi, or “Freude am Fahren” (Joy of Driving) for BMW? 

In the German higher education landscape, slogans such as Freiberg University’s “Think Globally, Act Globally” provide a commanding reference point for the new thinking focused on internationalisation, quintessentially painting a globalised and borderless workspace for today’s young generation of knowledge workers. Simply put, Germany’s international influence through education, technology, and process-driven perfectionist tendencies is undisputed, encapsulated in the well-known “Made in Germany” brand.

What’s the matter, then? Can Germany, like the USA, embrace diversity and become Europe’s land of opportunity for foreigners? What could be the implications of the ill feelings against immigrants and the accompanying xenophobic tendencies that have for quite some time been demonstrated openly in Chemnitz, Saxony, and similar states more aligned with the former East Germany? Europe, where Germany plays a crucial role as the single largest European economy, has been known to be slower than China in negotiating and implementing projects in Africa, though it compensates by delivering higher quality (see a recent researched report on the influence of the EU and China in Africa: https://africanexecutive.com/book.pdf). Influence is a delicate art, and that’s where the real challenge for Germany in enhancing her influence and attracting and retaining talent from the rest of the world begins.

And now, is Kenya the new petri dish for testing the workability of structured labour migration to Germany, from a developing country enjoying labour abundance with a median age of barely 20 to an ageing European economic giant with a median age of 47? Is sending young, skilled Kenyans to Germany the right solution for Kenya’s youth unemployment problem? With concepts such as brain circulationtalentism, and remotopia on the rise, this issue requires a nuanced analysis. In a passionate attempt to answer these slippery, if not hard-hitting, questions, I will refer to key findings of some recent collaborative research with the Inter Region Economic Network (IREN), a private Kenya-based think tank, and Taita Taveta University (TTU) Enactus Club, as follows:

  1. How Europe and China have been engaging Africa on trade and development cooperation – Link: https://africanexecutive.com/book.pdf
  2. What the Kenyan youth (aged 18-35) presented in 2021 as their assessment of the labour market situation in Kenya and the level of market-readiness they have received from their formal education and training in Kenya – Link: https://impactborderlessdigital.com/blog/wp-content/uploads/2023/10/Adero_ACCESS_Idea_report_210420.pdf
  3. Perspectives of African scholars and thought leaders on the place of Africa in the post-pandemic world – Link:  https://bit.ly/3sGP8yu
  4. White paper on addressing the current containment model – Link: https://africanexecutive.com/IREN_TheAfricaRoundtable_WhitePaper_April2023.pdf

A New Chapter Evoking Mixed Memories

On 13th September 2024, Germany opened a new chapter — inviting young Kenyans to migrate to Germany for work under a new “quota-less” labour mobility agreement. It has been reported that the ageing Germany seeks to fill about 400,000 vacancies annually in healthcare, engineering, and Information Technology (IT). As this news broke, two of my contacts living and working in Germany reached out for my opinion amid the disconcerting ambivalence that met the announcement among some Kenyans and Africans. One of the two is an African engineer and sports enthusiast who studied in Germany and is now living and working in Germany. The other one is a German national I knew as far back as 2005. Both were keen to discuss with me as a youth mentor the implications of this pact. I couldn’t help but reflect on my mixed experiences and the broader questions that this agreement raises. Is this an opportunity for Kenya’s young workforce, or does it open a new chapter in the brain drain saga?

Fortunately, I am no stranger to Germany, having spent extended periods there, in cities that identify with the former West and the former East Germany. The difference between the two regions was distinct and crisp, handing me a taste of contrasting ideologies on openness to racial diversity and inward-looking nationalism. Landing in Mannheim with no grasp of the German language, I had a first night of forced hunger because the shopkeeper could not communicate with me in English and I ended up buying the wrong things for foodstuff, not to mention a detergent instead of sugar. As I watched the flow of the sparkling Neckar River through the westward window of my room, I came to terms with the reality that the tea I wanted to make that evening was a missed target.

I witnessed key moments of culture shock, too. Instances like when to say sorry, and when to remind one to take extra caution (Vorsicht), played out before my very eyes, peaking in a vivid scene on a Dresden-bound Intercity Express (ICE) train from Berlin. Not to mention the paper-heavy processes characterising application forms and procedures in Germany. An interesting example is when one is asked to send an additional document to complete the list required to reach a decision on a given application even if that last piece of document would not change the verdict, only for the applicant to receive a swift regret letter upon submitting the last document. That is Germany in her process-oriented DNA. Throwing a laser beam of informed opinion from this experience, I can state that the labour mobility agreement is not a free walk for Kenyans to go and enjoy work and good pay in Germany. The process of vetting and equation of qualifications will be no less stringent, not least the condition for a satisfactory level of German language proficiency.

A Land of Opportunity for Immigrants or Returning Experts?

My response to the two friends came through in the following thought lines and leading questions. Is Germany a dream destination and land of opportunity for Kenyans, or indeed for Africans? The answer, I suspect, lies somewhere in the middle. Frankly, I’ve often remarked that Germany’s influence in Kenya, and across Africa at large, has been slow but sure through higher education scholarship and has been focused on long-term partnerships. In Kenya, I have always illustrated that it is only a matter of time before almost all the universities competitively receive as their Chief Executive Officers (Vice-Chancellors) alumni of German universities and/or the German Academic Exchange Service (DAAD).

For a long time, the DAAD has been a keen advocate of the idea that the Kenyans who have been sponsored to study in Germany return home to build their economy, which is a noble initiative indeed and a key element of the broader concept of brain circulation through skills transfer. Recent suggestions of encouraging the DAAD scholars to stay on and work in Germany has not taken away from the fact that the desired end for them is to return to their home countries eventually and impact the domestic economy, as returning experts. It is not lost on us that training abroad and returning home with skills to impact the domestic space has enabled some Asian states to build strong economies. In any case, human capital remains critical to the development equation of any country, and Kenya possesses admirable human capital by global standards.

Rethinking Labour Markets in a Borderless and Digitally Connected World

Germany’s ageing population and a shortage of workers in healthcare and technical fields, for example, have made labour mobility an appealing topic to explore. The labour mobility agreement between Germany and Kenya has sparked a range of reactions, from optimism to skepticism. The agreement has profound implications for both Germany and Kenya. Here, the key themes driving the debate and the factors that will determine whether the bilateral labour mobility initiative thrives or fails are explored. The real test will be whether Germany can offer sufficient incentives for highly skilled Kenyan workers as Kenya finds ways to channel the benefits back into her own economy. The potential influx of Kenyan professionals could help bridge this labour gap. However, the planned labour migration, while promising, is fraught with challenges that could make or break the success of the initiative.

It must be acknowledged that we are living in an increasingly digitally connected age with a labour market profoundly modified by online connectivity and post-pandemic adjustments in work culture. Therefore, the better question to ask is, “For a given job, how does physical presence compare to virtual presence in the changing labour market and workforce productivity equation in a new digitally connected world realising increasing global awareness of sustainable development goals?” To answer this question convincingly, a comprehensive look into the labour market demographics and differentiated demands on physical and virtual presence is indispensable. Gains in productivity, amenity values, and distributed cost savings emerge as immediate expectations from such a well-structured approach to a modified labour mobility matrix.  

Economic Disparity and Quest for Better Jobs

The labour mobility pact raises critical questions about the impact on Kenya’s labour market and the broader societal implications. A central question among Kenyans is why jobs cannot be created at home. The migration of workers, particularly in healthcare and technical sectors, could be seen as a symptom of Kenya’s inability to create an enabling environment for investment and high-paying job opportunities.

Germany offers comparatively better wages and working conditions, but the long-term effects of a potential “brain drain” on Kenya’s economy should not be overlooked. On the one hand, remittances sent by Kenyan workers abroad could boost household incomes back home. On the other hand, losing a significant number of skilled professionals might hinder Kenya’s own development in the long run.

Systems Thinking on the Labour Market Demographics

In terms of demographics, Kenya’s population is still young and growing, expected to rise past 60 million by 2030 and past 80 million by 2050. Germany’s population has been steady at 82 million for decades with immigration as the only significant inflow, and not natural increase, due to the low birth rate. Gentrification in Germany is making eldercare particularly important, as opposed to childcare which applies to the younger Kenyan demographic. At face value, it may seem that the migration of young Kenyans will not be a significant shock to Kenya’s labour market demographics. However, it takes about 35 years from birth to develop a skilled and internationally competitive mid-career professional, such as an engineer, architect, or medical doctor. Therefore, Kenyans born in 2024 have until 2060 to reach that skills maturity level. Consequently, from a systems-thinking perspective, which considers the delay period in a causal loop, the implication is that the threat of skills migration is still a real policy issue that Kenya must carefully re-examine in detail. As a result, the skills revolution challenge is compelling (Read more from Section 2 of this youth skills survey report: https://impactborderlessdigital.com/blog/wp-content/uploads/2023/10/Adero_ACCESS_Idea_report_210420.pdf).

Brain Drain or Brain Circulation?

For decades, countries like Kenya have been exporting skilled labour to more developed economies. For example, a quick audit of the top candidates who led in their Kenya national primary and secondary school examinations reveals that they left Kenya years ago and have been living and working abroad, mainly in North America. One school of thought believes that this move causes brain drain, where the departure of highly educated and skilled individuals retards domestic development. Accordingly, this perspective surmises that the Germany-Kenya pact will fuel this trend, leaving Kenya deficient in the key human capital she needs to accelerate innovations.

However, there is an emerging counter-narrative: brain circulation. In this model, professionals work abroad temporarily and return to their home countries with new skills and experiences, helping to develop local industries. For this to work, Kenya would need to create an environment conducive for the return of these workers, offering attractive job opportunities and supporting entrepreneurial ventures. If properly managed, the Germany-Kenya labour mobility agreement could lead to a transfer of knowledge and skills, eventually boosting Kenya’s long-term development. This idea aligns with the broader goal of fostering long-term development through temporary migration. If managed well, the partnership could allow Kenya to not only receive remittances but also ensure that returning workers help build local capacity in critical sectors, e.g., healthcare, engineering, and education. However, this model relies on the creation of favourable conditions in Kenya that would encourage a return of the skilled workers with international exposure, which is still a challenge. To be even more vibrant, there should be an exchange model as well because skilled German workers will also need to work temporarily in Kenya to ensure an impactful change by exchange (Wandel durch Austausch, as Germans would say).

Youth Unemployment: Kenya’s Crisis in Context

Kenya is facing a youth unemployment crisis, with over 36% of the youth (aged 18–35) actively seeking work but unable to find employment​. According to a nationwide survey on youth employment completed in 2021, focusing on addressing youth unemployment by matching lifelong skills development needs with talents and labour market demographics, most Kenyan youth believe that the education system does not adequately prepare them for the labour market. Many young Kenyans, even holders of degrees in STEM fields, decry a lack of opportunities and the market-ready skills they need for the limited jobs in competitive industries. In fact, the average work-related digital literacy of the surveyed youth was alarmingly low (Link to the report: https://bit.ly/4gD8xVl). The results of this recent nationwide youth unemployment study will repeatedly be referred to in the rest of the article.

The 2021 survey on the Kenyan youth​ revealed a profound mismatch between the skills that Kenyan graduates possess and the demands of the labour market. Over 50% of the youth surveyed felt unprepared for the job market, with many citing a need for retraining even after completing university degrees. This skills mismatch is not unique to Kenya. It is a global problem. Germany, with its strong focus on vocational training and apprenticeships, offers a potential solution. The dual education system in Germany could serve as a model for Kenya to better align education with industry needs. However, this does not solve the underlying issue in Kenya: a lack of job opportunities. Germany may benefit from the influx of young, skilled workers, but Kenya risks losing the very individuals it needs to drive its own economy forward.

The youth survey highlighted concerns about the impact of automation and digitalisation on job security. There is fear that automation will lead to fewer job opportunities, particularly in sectors that traditionally rely on manual labour. However, as industries evolve, new opportunities are emerging in the digital economy, the gig economy, and even green and blue economies. Kenya’s youth are well-positioned to take advantage of these emerging sectors, particularly with the right skills training. If Kenya invests in vocational training and digital skills development, it can create a workforce that is ready for the jobs of the future — jobs that may not even require migration to Germany.

The pact between Germany and Kenya could provide an escape route for some youth, but it also risks exacerbating Kenya’s skills deficit. As more young people leave the country, Kenya’s capacity to solve her unemployment problem diminishes. Moreover, most of those migrating will likely be the most diligent and qualified, creating an even wider skills gap in critical sectors such as healthcare and technology.

Substitution of More Friendly Immigrants for Less Friendly Ones?

Germany has seen waves of migrants from war-torn countries that have not always integrated easily into the German society. In contrast, Kenyan professionals may be seen as more “friendly” immigrants due to cultural resilience, higher levels of compatibility, and a reputation for hard and smart work. This raises an interesting ethical and political question: Upon what basis should one group of migrants be preferred to another based on perceived cultural compatibility? While it may seem pragmatic to focus on migrants who are more likely to integrate successfully, such a policy risks reinforcing stereotypes and fuelling resentment among less “favourable” groups. In this context, the German labour market’s focus on Kenyan workers could be viewed as a glorification of talentism (a term popularised by the German engineer and economist, Klaus Schwab, Founder of the World Economic Forum). Talentism in this respect takes the form of prioritisation of talented and skilled workers over the less talented and skilled or culturally “difficult” migrants. This scenario could further complicate migration policies and lead to polarisation with stereotypical profiling of certain nationals.

Remotopia and E-Citizenship: A Possible Alternative

One of the most interesting developments in global labour mobility has been the rise of remotopia — the ability to work remotely from anywhere in the world. The Republic of Estonia has experimented with e-citizenship, allowing non-residents to access its digital infrastructure and start businesses remotely under the e-Residency arrangements. Could a similar model be given more emphasis in the Germany-Kenya pact?

However, the uptake of remote jobs in sectors like healthcare and technical trades — where physical presence is often essential, remains limited. For jobs that cannot be performed remotely, migration will still be necessary, but the possibility of remotopia could challenge the assumption that relocation is the only way forward. The same applies to Kenyan experts who have been living and working abroad, the critical Diaspora Community. They don’t have to return to Kenya physically to impact development if they can still optimally utilise digital connectivity to transfer knowledge and skills effectively.

In the case of digital jobs, Kenyan professionals could work remotely for German companies while staying in Kenya. This would provide Kenyan skilled workers with valuable work experience and income without the need for permanent migration. It would also allow Kenya to retain her skilled workforce, reducing the feared risk of brain drain. The COVID-19 pandemic proved that remote work is not only feasible but, in many cases, desirable. Could this provide a middle ground in the ongoing debate over labour migration?

Language Barriers: A Lingering Challenge

One of the most significant barriers Kenyan workers must face is the expectation that they will learn German, especially in highly sensitive fields such as healthcare. While younger workers may be more adaptable in learning a new language, the older, highly skilled professionals could find this a significant hurdle. Would Germany consider making English an official language in certain sectors, such as healthcare, to attract skilled workers from Anglophone countries like Kenya? Or will the onus remain on the migrants to assimilate linguistically?

In a globalised world where English dominates international business, this question has profound implications. Germany’s reluctance to adapt to a more multilingual workforce could limit the attractiveness of her labour market to Kenyan professionals. On the other hand, this could incentivise younger, more adaptable Kenyan workers to seize opportunities abroad, while their more experienced counterparts may be left behind.

The Remittance Debate: Is it Overstated?

The Kenyan government frequently touts remittances as a major benefit of overseas labour agreements. The sheer number and percentage of Kenyan immigrant workers in Germany is still very low. This raises the question of whether remittances are a legitimate justification for promoting labour mobility, or if their economic impact is overstated.

Moreover, relying on remittances as a development strategy can create dependence and disincentivise local job creation. Should Kenya focus more on fostering local industries and economic resilience rather than exporting its workforce? The remittance debate is central to understanding the true value of labour mobility agreements.

Xenophobia and Integration: The Social Challenges

As young Kenyans migrate to Germany, they will face significant social challenges, including language barrier, cultural differences, and, potentially, xenophobia. Germany has made strides in addressing racism and promoting integration, but xenophobic attitudes still exist. In recent years, there has been a rise in nationalist sentiments across Europe, and Germany is not immune to this trend.

The question remains: will Germany be able to integrate a new wave of African workers into its society, or will they face the same struggles that many migrants from Syria and Afghanistan have encountered? The answer will largely depend on the policies and social support systems that Germany puts in place to protect and empower migrant workers.

Family Incentives, Visa Policies, Cultural Fusion and Long-term Implications

For the intended partnership to thrive, Germany may need to consider offering more family-friendly visa policies. Migrant workers are often hesitant to relocate without assurances that their families can join them and access local services such as healthcare and education. Offering family incentives, such as resident visas for immediate family members, could make the prospect of working in Germany more appealing to Kenyan professionals. Without these guarantees, the agreement may struggle to attract the skilled workers Germany urgently needs.

As Kenyans integrate into German society, intermarriage is likely to increase. This presents both opportunities and challenges. On the one hand, intermarriage can promote cultural fusion and social cohesion. On the other hand, it can lead to identity struggles for children born into mixed-race families, particularly in societies where racial and cultural differences are still a source of tension.

In the long term, the increasing presence of Kenyan-German families could reshape the social fabric of both countries, creating new cultural hybrids and fostering greater understanding between the two nations. However, without strong anti-discrimination policies and support systems, these families could face significant challenges.

Conclusion: A Debate Worth Having

The labour mobility pact between Germany and Kenya is a complex issue that raises more questions than it answers. For Germany, the agreement offers a solution to its ageing population and shrinking workforce. For Kenya, it presents an opportunity for young people to escape unemployment and gain valuable work experience abroad. However, the long-term impacts of this migration could be detrimental to Kenya’s development unless managed carefully.

The planned labour mobility agreement between Germany and Kenya opens the door to a host of critical issues, from the impact of demographic shifts and brain circulation to the rise of remotopia and the ethical considerations of favouring certain migrants over others. At its core, this initiative challenges both nations to rethink their approaches to labour markets, migration, and economic development.

For Germany, the success of this programme will depend on how well it can balance the need for skilled workers with the realities of cultural and linguistic integration. For Kenya, the challenge lies in ensuring that the migration of her workforce benefits the country in the long run, not only through remittances but also the eventual return of highly skilled professionals to transfer knowledge and skills home and help establish internationally competitive industries in Kenya, thus creating more job opportunities locally in the long run.

As we progress further into a digital age where the boundaries between nations blur, labour mobility agreements must evolve to reflect new realities. Remotopiae-citizenship, and talentism are just a few of the concepts that could reshape the future of work and migration. The conversation between Germany and Kenya is just the beginning of a much broader debate about how countries can adapt to these shifting paradigms.

Is this a path to prosperity for Kenya’s youth, or does it merely postpone the real challenge of creating jobs at home? Could remotopia and e-citizenship offer a better solution? And how will both countries manage the social and cultural challenges that come with migration?

These are the salient questions that must be debated as we move forward, ensuring that this labour mobility agreement benefits both nations and does not come at the expense of Kenya’s future.

By Dr. Nashon Adero

#IBD Series


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