Kenya and Malaysia on Wednesday agreed to strengthen economic ties by boosting cooperation existing between the two countries to eradicate poverty and achieve sustainable development.

A communique issued following a meeting in Nairobi between visiting Malaysia Premier Seri Abdullah Ahmad Badawi and his host, President Mwai Kibaki, said the two leaders signed a memoranda of understanding in the planning and implementation of road projects and in science and technology.

The communique said the two countries agreed that establishment of a joint commission and joint trade committee would spur business and also establish foundations for commercial relationship.

It was hoped that Kenya would particularly benefit from transfer of technology and in private sector participation in road construction from Malaysia, which has advanced technology in that field.

It said Kenya also would benefit from Malaysia's technical training assistance and in technical areas such as infrastructure development, e-government and ICT.

The two leaders agreed to continue to support each other over issues concerning sovereignty and territorial integrity.

The Kenya National Economic and Social Council have been collaborating with the National Economic Action Council of Malaysia as Kenya prepares to implement Vision 2030.

Kenya being one of the principle beneficiaries from Africa of the Malaysian technical cooperation program, it was agreed that memorandum of understanding on education between the two countries should be embarked on as soon as possible.

Prime Minister Badawi praised his host for assuming the chairmanship of both the Inter-Governmental Authority of Development (IGAD) and the East African Community and hailed Kenya's positive role in facilitating the peace process in Sudan and Somalia.

Meanwhile, Badawi, the first Malaysian leader to visit Kenya said he hoped that both countries, which continue to register impressive economic growths, could move further by diversifying and expanding trade, which currently is in favor of the former.

Badawi said although the east African country was Malaysia's eighth largest trading partner in the region, the amount of trade was still low.

"The bilateral trade value in 2006 was only 90.3 million U.S. dollars, which accounts for less than 0.1 percent of Malaysia's global trade. But I am pleased to note that trade figures are on the upward trend," he told the Malaysia-Kenya Business Forum in Nairobi.

The Malaysian Premier, who arrived in Kenya for the second leg of his three-nation African tour, noted that the range of products traded were limited, thus the need to examine complementarities for further trade expansion.

"For example, Kenya has agricultural and mineral resources, while Malaysia's comparative advantage is in secondary industrial products such as machinery, chemical and chemical products," he said.

"Let us explore the possibilities not only in manufacturing but manufacturing-related services, in upstream as well as in downstream oil and gas activities," Badawi added.

The main Malaysian exports to Kenya include palm oil based products, aluminum, electronic components, rubber products, apparel, textile yarn and pharmaceuticals.

The principal Kenyan exports to Malaysia include metallic salts/ inorganic acids (soda ash), tea, frozen and fresh fish, tobacco, leather and stone. Gravel is also exported in limited quantities.

Badawi arrived in Nairobi late Tuesday from Sudan where he voiced support for the Sudanese government and hoped the West would not impose sanctions on Sudanese firms.

Malaysia is the second-largest investor in Sudan after China

The Malaysian premier is expected to fly to Windhoek Namibia, on Thursday for his final leg of his three-nation tour.