Kenyans in the Diaspora Can Send Home Sh500 Billion Annually, Gov’t Told
Kenyans abroad have the potential to send home Sh500 billion annually if the government supports them, a diaspora lobby group says.
Kenya Diaspora Alliance (KDA), which represents more than 30 diaspora organizations, said little or no support from the State has led to underutilization of the investment potential of Kenyans living and working abroad.
Last year, Kenyans in the diaspora sent home about Sh280 billion and this amount could double in a short time if the government took diaspora affairs seriously, according to KDA. In the nine months to September 2019, diaspora inflows stood at Sh215.6 billion with the World Bank projecting the total remittances for the year at Sh285 billion.
“This is possible because we have a case of 10 million Filipinos abroad who remit over Sh4 trillion a year to their country, yet there are about four million Kenyans in the diaspora who could easily be sending Sh500 billion every year,” said KDA Global Chairman Shem Ochuodho.
Ochuodho blamed the low Kenya diaspora remittances on inadequate State support, arguing that most of the money sent from abroad go down the drain through unplanned spending, with less than 30 percent going to meaningful investments.
Since 2015, diaspora inflows have been Kenya’s top foreign exchange income earner ahead of revenue from tourism, tea, coffee and horticulture exports.
In 2018, North America was the leading continent in terms of remittances with 47 percent, followed by Kenyans in Europe (24 percent) and the rest of the world (29 percent).
Comments
Why is this Ochuodho fellow…
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Why is this Ochuodho fellow comparing what filipinos send to their country,to what diaspora Kenyans send to Kenya.We are not in competition with any country.We send according to our ability so to speak.We are not "hoarding" any cash that could be send...
I highly doubt that filipinos are in anyway concerned with what Kenya diaspora sends.
Ochuodho should be pressing the government to improve services in the embassies.I believe that I read the other day that funds that were set to give kenyan embassy in USA,aface lift was reneged.
As for most of the money going down the drain,its because of corruption,and ineptitude,as opposed to unplanned spending.My 2 cents.
When I pay for a medical…
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When I pay for a medical bill for a relative, I hope it is being considered meaningful spending
Ochuodho - Kenyans abroad…
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Ochuodho - Kenyans abroad have no obligatory requirement and responsibility to send money back to Kenya. They can out of goodness of their heart offer to help based on specific needs merely determined by the giver. The urgency of need(s) assist the giver to decide how much money he/she will send to Kenya; and to whom the money should be sent.
It is true Kenyans abroad are capable of sending to Kenya over double the amount you have so leisurely mentioned here - yes, over Kshs 500 billion, but the problem here is the way that money will be used once it has arrived to the recipients in Kenya. Often, the recipients use the money for petty conspicuous consumption instead of carefully using the money in doing beneficial projects. On the other hand, the sending institution charges a hefty percentage of that money where the tax man gets a certain percent in form of taxes. Going further - politicians steal the tax money to satisfy their greed. Well Ochuodho, what are you doing to control the blatant theft of tax money gotten from overseas remittance? Nothing!!
Well, I’m of the old school of thought that whenever a person is given free money, or something of value, he/she may not be careful enough how the money is used. Free things or money is frequently misused because the recipient has not sweat to earn the money.
I think the free wheeling of sending hard earned money to people back in Kenya need to come to a screeching haunt - completely stop - so that Kenyans back home can be self dependent, resource accountable, and be creative in figuring out how to solve their money and other problems.
In a nutshell therefore, Ochuodho needs to stop begging and leveling blame to Kenyans abroad. He should not ask for more money until the money already previously sent to Kenya can be used for quality projects that can further generate additional income to meet the Kshs 500 billion target that Ochuodho desires to reach. It is that simple!
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