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Kenya is looking to tap into money sent home by Kenyans abroad to fund projects under the government’s big four agenda.
To do this, the government is working on a plan that will see Kenyans in the diaspora invest directly in affordable housing, universal healthcare, manufacturing and food security among other projects.
Further to this, the government is planning to issue a diaspora green bond in which citizens abroad can invest in various public projects. Kenyans living and working overseas are also encouraged to pump their funds to agribusiness, value addition as well as setting up of healthcare facilities such as cancer centers.
“For all these to be actualized, the government needs to put in place pro-diaspora policies to attract their assets,” Kenya Diaspora Alliance (KDA) chairman Shem Ochuodho told The East African.
Ochuodho projected that Kenyans in the diaspora can mobilize the funds required to construct the remaining section of the standard gauge railway (SGR) if the government came up with the right policies. At least $3.5 billion (Sh350 billion) is needed to complete SGR’s phase 2B from Suswa to Kisumu, which stalled after China declined to finance it.
Additionally, the government is looking to extend the maturity period of Treasury bonds as a way of encouraging Kenyans abroad to invest in government securities.
In Kenya, treasury bonds are considered predictable and long-term sources of income, offering interest payments every six months. This is because the interest rate determined at auction remains for the full cycle of the bond.
Presently, three-quarters of all remittances from the diaspora are spent on food, education and medical services by families back home, meaning only 25 percent is invested in income-generating activities such as real estate, land, stocks, and savings.
“There is a lack of structured strategy for tapping remittances, that’s why people in the diaspora mainly invest in real estate,” added Ochuodho.
Last year, the diaspora sent home $2.7 billion (Sh280 billion), a new annual record, according to Central Bank of Kenya (CBK) data.
Remittances from the diaspora have remained Kenya’s leading source of foreign exchange since 2015, ahead of earning from tourism, tea, coffee and horticulture exports. In Africa, Kenya is the fourth-largest recipient of diaspora remittances behind Egypt, Nigeria, and Ghana.
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Shame, shame for real. We need better as diaspora and Kenyans in general! Bure kabisa
Kenyans in Kenya already pay taxes.
Diaspora Kenyans need to stop sending money to kenya. This is encouraging looters of public funds to steal more.
Affordable housing, universal healthcare, manufacturing and food security among other CORRUPTION projects.
SGR is not making money. How do you expect kenyans to throw good money after bad.
Beyond zero corruption.
These people can not stop drooling over diasporian "doubles" money yet getting passports for those in diaspora is like mining diamonds.
attempt and you will die poor! wataiba yote
What a sick and retarted policy! How much do the politicians in Kenya earn? Last time I checked they were among the highest paid in the world for doing the most laid back job ever! Why don't you tap into their humongous salaries to fund those projects? Whatever Kenyans abroad send back home, its all sweat, blood and tears not money to fund your projects and fatten those currupt pockets some more! Such a pathetic idea!
What can we get in return kenyan government is corrupt to the bone if cost SGR was highly overexagerated compare what costed ethiopia and quality of the wagon to dipletated junklike wagon acquired by SGR kenyans in diaspora be wary of con ship
All imaginary utopia misrepresentation by this former MP Ochuodho!
Those in the diaspora need to watch out for the sweet talking conmen among them who will lead them to the trap of bankruptcy through conmanship.
It all sounds nice and daddy until you lose all your money to the political hyenas in Kenya. You don’t give your hard earned money to some hungry dogs to manage it for you.
Ochuodho is pretending not to know the reality on the ground once your money have been received, taxed heavily, and the rest foolishly squandered with fake projects.
Tell the diaspora the truth, Ochuodho! You may need that truth to set you free when every body come baying for your blood after losing everything!
Big four agenda Graft, murder,corruption and tax evasion