Kenyans in the US Launch a Posh Estate in Nairobi

A group of around 300 Kenyans residing in the US has launched a multi-million housing project in Nairobi.

This 87-unit complex, dubbed Kitisuru Amani, is situated in the picturesque Nairobi suburb bordering Kiambu county and consists of two and three-bedroom apartments split across three blocks. Owned by JRN Investment, also known as Jambo Diaspora Investment Group, the project was funded entirely by members, with a contractor sourced from Landmark Holdings and construction supervised remotely through drones, video conferencing, and periodic visits. This is especially noteworthy considering that diaspora investors are reportedly losing billions of shillings every year due to the manipulation of family members. 

A survey conducted by the Central Bank of Kenya (CBK) also reveals that diasporans often lose a third of their money to fraud, theft, and corruption. Kenyans abroad are sending home a large amount of money, with Sh453.6 billion sent in 2021 alone. The US is the largest contributor, making up 58.5 per cent of the remittances. The Central Bank of Kenya only takes into account funds sent through formal channels, such as banks and other licensed remittance providers.

Unfortunately, many have lost significant amounts of money by making investments through untrustworthy family members. When taking over the office, Foreign and Diaspora Affairs Cabinet Secretary Alfred Mutua promised to protect the interests of Kenyans living abroad. Direct investment by diasporans, with its low transaction costs and decreased risk of fraud, remains a double-bullet solution for Kenyans in the diaspora. The cost of sending funds is usually between 4 - 5 per cent of the total amount.

Diaspora remittances have become the main source of foreign exchange, surpassing exports such as coffee, tea, and horticulture. Since 2011, Kenya has been considering the possibility of launching a diaspora bond and in April, Deputy President Rigathi Gachagua assured diasporans that necessary steps are being taken to ensure they can invest in such bonds. This type of debt instrument is used by developing countries that are in need of monetary support from those who live abroad in wealthier nations.

JRN is now getting ready for the second phase of the project, which is focused on constructing a variety of reasonably priced apartments and duplexes, in line with the affordable housing goal of President William Ruto.