The government has revealed plans to boost labor exports in a bid to increase Kenya’s diaspora remittances.
Labor and Social Protection Cabinet Secretary Simon Chelugui said the number of Kenyans in the diaspora is currently estimated at four million but their remittance is below that of other African nations including Egypt, Nigeria, and Ghana.
Kenya received Sh341 billion in remittances from Kenyans living and working abroad in 2020, according to data from the Central Bank of Kenya (CBK).
Speaking during the graduation of home-care management trainees in Nairobi this week, CS Chelugui indicated that the country’s focus is now on the export of skilled labor, which attracts better remuneration for Kenyan workers.
He pointed out that despite the government investing heavily in mainstreaming labor migration, there are still challenges such as lack of adequate pre-departure training and orientation.
Diaspora remittances have remained Kenya’s leading source of foreign exchange since 2015, ahead of earnings from tourism, tea, coffee, and horticulture exports.
Last month, CBK said it is developing a framework that will offer incentives to Kenyans in the diaspora who set up businesses back home.
CBK Governor Patrick Njoroge said they are relying on the findings of a study the bank carried out recently to draft a facilitative policy that encourages increased direct investment flows by Kenyans abroad.
The survey conducted in February and March was the country’s first-ever survey on diaspora remittances and was aimed at collecting information on remittance inflows to help guide policy to boost the role of remittances in supporting the economy and livelihoods.
“There are all sorts of ways that the Kenyans out there could be supportive (to economic development), not just making investments in government securities and other assets like equities,” said Njoroge.
“They can set up shops here; they can have direct investments … as has happened in other countries like India, not just portfolio investments.”
The Govt should continue to…
The Govt should continue to seek to provide good service to the diaspora community.
First, Concerning business; 1)the govt should remove barriers to trade that the diaspora community may encounter while trying to invest in Kenya eg excessive taxes or costs, fraud & bureaucratic red tape 2) the govt should set up policies that will provide protections to diaspora community investments. 3) the govt should also seek to provide leadership to the diaspora community as far as helping them to invest through providing qualified advice on investment opportunities in the country.
Secondly; the govt should seek to be aware of the challenges that the diaspora community faces in host countries. Then the govt should seek to advocate for favorable diplomatic policies for the diaspora community in host countries. This is especially pertinent where there are various forms of abuse going on in host countries.
I know of no other country…
I know of no other country that says it wants to export it’s people to make money. This is the sincerest form inferiority complex. Being african and remembering slave trade we should be very careful
@ Guest# 13, that concerns…
@ Guest# 13, that concerns me too.This would open an avenue for more brain drain. Can you imagine Kenya encouraging doctors,teachers, scientists,engineers ,prostitutes to go in other countries do some harvesting,and come back with basketful of wealth?
First,after tasting the good harvest,there is no guarantee that the harvest would be sent back to Kenya,much less the harvesters returning back.This is a very unreliable mode of garnering foreign exchange. The best way is to create products that can sell on the international market.
Since Kenya is a growing…
Since Kenya is a growing economy and a hub for the greater east african economic market. There are many big players that are trying to set up shop in Kenya and this region. This is an avenue for jobs for the Kenyan skilled and unskilled Labor force. Therefore Kenya should look to tap into this potential. Kenya should allow this big players to set up shop in the country. This will benefit Kenya in the form of; 1)foreign direct investment (millions/or maybe billions of dollars), 2) Good well paying Jobs for Kenyans 3) Technology/knowhow transfers 4) access to a robust market place. The challenges maybe that some of this big companies may outcompete their Kenyan counterparts and also that part of the profits they make goes to the parent foreign countries. So there is a risk and benefit calculation that the govt has to keep making. By and large Kenya should look to remove the barriers to trade for this big players and this will improve the Kenyan economy. The big players I am talking about are the US chamber of commerce, and other Big companies on the world stage. (My View)
Removing those “barriers to…
Removing those “barriers to trade” is where we fail at …me thinks. Those big players are so shrewd… they make all the money…take all the resources…leave you holding the birth waters… They are big, bad boys…the small print is their secret weapon. Thieves!
What has KE Gov ever done…
What has KE Gov ever done for diaspora other than a passport?
They aren’t very good with…
They aren’t very good with the passport thing either.
The end of mental and…
The end of mental and spiritual slavery is on the horizon. We are holding on as the labor pains increase awaiting the birth of a new golden age where what is done in heaven will be done on earth.
I mean there are no jobs in…
I mean there are no jobs in kenya..might as well..our sisters and brothers are suffering