The latest Central Bank of Kenya (CBK) shows that Kenyans living and working abroad sent home $ 2 billion or Ksh. 258.9 billion during the first five months of the year 2024, which was an 18.9 percent jump from the inflows of the similar period last year. Though the tradition high diaspora source destinations are still way above the new source of remittances, the increased earnings from new destinations that Kenyans are migrating more in the new areas. data shows that these new destinations like Australia made diaspora remittances to be $ 64.13 million, Canada was $50.32 million, United Arab Emirates was $48.1 million and Germany was $89.3 million. The Kenyan diaspora has emerged as one of the best in Africa and it is therefore our hen that lays the golden eggs. Four things are key from these growth and increased remittances home. First, Diasporians and their interests should be protected and incentivized through for example coming up with more platforms to help and facilitate networks and partnerships between diaspora investors, local entrepreneurs and stakeholders. These forums could include benchmarking and knowledge exchange programmes, investment forums, opportunities and partnerships, including the operationalization of Public Private Partnerships (PPPs).
Secondly, there is need to embrace and leverage on globalization, which is the defining feature now and in the future. The Kenyan diasporians have already embraced that concept and have migrated to other nations where they are doing exemplary well. The future will be shaped by greater interconnectivity, world trade rules and regulations and the countries which have strategically prepared themselves will reap big. Thirdly, diasporians have played key roles in fostering patriotism, national unity, prosperity and driving socio-economic development through their remittances. They have joined hands with other Kenyans in building our nation through small but impactful ways and actions. US President JF Kennedy implored upon Americans “Ask not what your country can do for you, ask what you can do for your country”.
Fourthly, diasporians should be assisted to invest back home through establishment and operationalization of various instruments, among them the diaspora bond, which can be used for infrastructure financing, bank capitalization and debt management. Attractive diaspora bonds success characteristics include: first, strengthened governance of the bonds through adequate reporting; secondly, clearly demonstrated link between the bonds and credible country development strategy that advances sustainable economic growth and fosters a conducive investment climate; thirdly, targeting specific projects or enterprises that produce sufficient economic value to support repayment of the bond, and meeting significant needs of the broader population; fourthly, enhancing the credit of bonds in line with the standards of international development agencies and financial institutions. Dr Giti is an urban management, public – private partnerships (PPP) and environment specialist. mutegigiti@gmail.com , @danielgiti
Dr. Daniel Mutegi Giti 