Home DIASPORA NEWS Kenya’s Strategic Partnership with Its Diaspora to Eliminate Remmitance Bottlenecks

Kenya’s Strategic Partnership with Its Diaspora to Eliminate Remmitance Bottlenecks

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Kenya's Strategic Partnership with Its Diaspora to Eliminate Remmitance Bottlenecks
Diaspora Affairs' Savings, Investments, and Remittance (SRI) Director Boniface Munzala

The Kenyan diaspora is playing an increasingly significant role in the nation’s financial landscape.

Recent discussions between the International Fund for Agricultural Development (IFAD) and the Kenyan government, facilitated by the State Department for Diaspora Affairs’ Savings, Investments, and Remittance (SRI) Director Boniface Munzala highlighted this growing importance. The focus of these discussions extends beyond remittance flows. While January 2024 saw a surge in remittances, reaching $412.4 million and exceeding the prior month’s total by nearly $40 million, the dialogue aims to foster a more comprehensive approach.

Both parties recognize the need to improve the exchange of information on financial opportunities available to Kenyans living overseas. This knowledge exchange could empower the diaspora to invest in their home nation, fostering socio-economic development for both the diaspora community and Kenya. The collaborative spirit embodied by the Kenya Diaspora Department underscores their commitment to addressing challenges and creating win-win situations.

This collaborative approach is particularly timely given the rising trend of diaspora inflows. Data from the Central Bank of Kenya (CBK) reveals a consistent upward trajectory. January 2024 alone witnessed an 18% increase compared to the same period in 2023. Looking at the broader picture, the cumulative inflow for the 12 months leading up to January 2024 reached $4.253 billion, representing a 5.3% growth over the previous year.

The significance of these remittances extends far beyond simple statistics. The CBK emphasizes that these inflows not only contribute substantially to Kenya’s foreign exchange reserves but also serve as a critical lifeline, supporting countless families and livelihoods across the nation. The Kenyan government is making a concerted effort to attract investment from its diaspora community. On Monday during a Diaspora Forum held in Dar Es Salaam, Tanzania, Ann Wanjohi, Director of the Liaison & Partnerships Division at the State Department of Diaspora Affairs, emphasized the crucial role Kenyans abroad can play in the nation’s economic growth.

Ms Wanjohi highlighted the importance of financial empowerment within the diaspora, urging them to consider investing back in Kenya. She noted the potential for establishing robust investment networks that would channel resources towards job creation initiatives. Recognizing the valuable skills and technological expertise prevalent among Kenyans living abroad, Ms. Wanjohi advocated for programs that facilitate the transfer of this knowledge back to Kenya. This, she explained, would not only empower local communities but also open up trade routes for the export of Kenyan goods and services.

5 COMMENTS

  1. JUST LEAVE PEOPLE IN THE…
    JUST LEAVE PEOPLE IN THE DIASPORA ALONE WITH THERE HARD EARNED MONEY .
    DO YOU KNOW HOW HARD THIS MWAKILSHI SMALL BALLS BOYS WORK HARD FOR THEIR MONEY CLEANING OLD PEOPLE MATAKO .

    • However you earn the money…
      However you earn the money. It is your own money to do with it whatever you choose. Why are they dictating what we should do with our money

  2. All the morons want is our…
    All the morons want is our hard earned cash, but we diaspora get zero services!!!

  3. Why invest in a country with…
    Why invest in a country with inflation rate of 6.3 percent despite the dollar amount injected to the overheated economy. Kenya money supply has grown too big relative to the size of the economy, thus diminishing the unit value of the Kenyan shilling. Rather than ask the people in diaspora to help improve the economy, you try try con us. Please could you bring all the dollars you have banked in the offshore accounts back to the country. The money you leaders have stolen from the loans awarded to the country. The diaspora dollar is hard earned money with sweat.

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