Opinions of Wednesday, 18 December 2024

Columnist: James Mwangi

New labour deal with Kenya may ruin Germany’s economy

Robert Habeck, Germany’s Economic Affairs Minister; Kithure Kindiki, Deputy President of Kenya Robert Habeck, Germany’s Economic Affairs Minister; Kithure Kindiki, Deputy President of Kenya

Germany’s agreement to bring 1.9 million workers from Kenya and provide 750000 of them an easy pathway to citizenship sparked intense debate, with critics warning of serious economic and social consequences.

The deal, aimed at addressing labour shortages, risks straining Germany’s infrastructure, exacerbating wage pressures, and fueling political divisions.

An influx of unskilled labour could flood low-wage sectors, driving down wages for existing workers and increasing competition in industries already grappling with exploitative practices. Critics argue this will destabilize regional economies, particularly in areas with high unemployment, further disadvantaging local populations.

Germany’s existing integration systems are already under pressure, with many migrants facing challenges in acquiring language skills and stable employment. Critics fear that accommodating over a million additional workers could overwhelm housing, healthcare, and education systems, particularly in cities already dealing with acute shortages.

Some argue that Germany should focus on training and employing its underutilized workforce and address domestic barriers like child care and retraining programs. Critics see the deal as a missed opportunity to invest in long-term solutions.

While the agreement seeks to address labour shortages, critics caution that without better planning and safeguards, it risks creating a cascade of challenges for Germany’s economy and society.