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Lack of political good will, corruption and a non-friendly investment environment are hurting the countrys chances of tapping investments from Kenyans living abroad, the Kenya Diapora Alliance has said.
According to the lobby group, the diaspora community are still uncertain over investing back at home, a move that limits them from remitting more cash.
The Central Bank data shows remittances stood stood at Sh116 billion at the end of last September.
The lobby’s chairman Shem Ochuodho said in an interview with the Star on Friday the volume of remittance could double if the government came up with friendly policies that will ease investment by citizens living outside the country.
These include incentives such as land for development, tax incentives on cash and exports and an assurance on security of investments by the diaspora community.
“Kenya is losing out due to government bureaucracies. The government is reluctant to put in place measures to support remittance and investments,†Ochuodho said.
Last July, KDA submitted a number of proposals to the government it said were aimed attracting more Kenyans in the diaspora to invest back home.
They included political inclusion such as a right to vote and have representatives in government, including a one per cent share of jobs in counties.
“The Foreign Affairs ministry is letting us down. Last year the president (Uhuru Kenyatta) directed a meeting between the ministry and the diaspora to strike a way forward but it failed to take place,†Ochuodho said.
He said the diaspora could help finance major projects such as the Lamu Port Southern Sudan-Ethiopia Transport corridor project.
He said KDA has already identified a Germany company willing to put $1.5 billion (Sh153.66 billion) into the LAPSSET project, for construction of an oil storage facility.
He cited frustrations faced by US-based Kenyan telecommunication firm GeoNet in the country as some of bureaucracies disappointing investments by the diaspora.
KDA has formed a Diaspora Investment Club targeting to invest in the country’s real estate and stock market.
Last year, Kenyans in the diaspora sent home a record $1.6 billion (Sh163.91 billion) in remittances, according to a World Bank report.
This is a 17.9 per cent increase from 2014’s Sh139 billion, making Kenya among the highest recipients of remittances in 2015.
- The Star
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