Kenyan Government Initiates Diaspora Savings Program for Nationals Working Abroad

The government of Kenya is making significant progress in expanding financial opportunities for Kenyans residing outside the country.

A groundbreaking savings program is set to be introduced, pending the final approval of the Labour Migration and Management Bill, 2023. Under the proposed bill, the Ministry of Foreign Affairs will take the lead in establishing a voluntary savings plan exclusively for migrant workers. Working closely with relevant Kenyan missions, the ministry will develop and oversee this fund.

A key aspect of the program is the provision that grants the Cabinet Secretary in charge of foreign affairs the authority to collaborate with financial institutions in Kenya. The goal is to secure favourable terms for the investment of contributions made by migrant workers. This strategic move is expected to create a favourable environment for Kenyans abroad to actively contribute to the nation's economic growth.

“The Cabinet Secretary responsible for matters relating to foreign affairs may liaise with financial institutions in Kenya to negotiate favourable terms on the investments of any contributions that may be made,” the Bill reads in part.

According to the bill, the Treasury Cabinet Secretary will receive regular updates on the status of the savings program. Furthermore, in coordination with the foreign affairs counterpart, the Treasury CS will devise policies and initiatives to incentivize migrant workers to invest their funds back into Kenya. The government intends to create a central database that will store important information about various programs and projects in Kenya that can be invested in by migrant workers. In addition, measures will be put in place to prevent fraudulent activities that could hinder such investments, demonstrating the government's commitment to the success and honesty of the program.

This initiative is in line with President William Ruto's overall vision, which considers Kenyans living abroad as essential contributors to the nation's development. On December 10, President Ruto highlighted the importance of remittances from the diaspora in stabilizing Kenya's currency and economy. The planned dollar remittances from those residing overseas are viewed as a vital step in addressing challenges related to exchange rates, ultimately promoting economic stability for the country.