Germany has committed to funding the expansion of the Olkaria Geothermal Station to increase its capacity.
Addressing the press at the State House on Friday, President William Ruto said this was arrived at after holding bilateral talks with the Chancellor of Germany Olaf Scholz.
The financial support comes at a time when the country is working to achieve a 100 per cent clean energy grid.
The leaders agreed to work together in the implementation of the Paris Agreement by leading Kenya to join the Climate Club.
During the meeting, they discussed the modalities of increasing the capacity of the country's TVETs and the export of skilled workforce to Germany.
Ruto urged Scholz to review and ease immigration laws to enable Kenyans to find employment in Germany.
"We have agreed to establish a technical team to expeditiously formulate an appropriate framework for the export of labour to Germany," the President said.
He also requested Germany to review the tariff barriers to allow Kenyan products to enter its market and that of the larger Europe.
Germany agreed to support Kenya's efforts to conclude the negotiations for the Economic Partnership Agreement between the East African Community and the European Union on the principle of variable geometry.
The leaders further agreed to finalise a framework of exchange programmes between the countries' small and medium-sized enterprises.
"What we seek is synergy, cross-pollination and other complementarities to enrich learning and grow the economy from the bottom going up," Ruto added.
Chancellor Scholz committed to extending financial and technical support to the African Climate Action Summit that Nairobi will host in September.
He is on a three-day trip to Africa that will see him visit Ethiopia after Kenya.