Diaspora key to growth of our economy

The 9th annual Kenya Diaspora homecoming convention was held from December 7 to 9 under the theme: “Leveraging diaspora resources for inclusive growth”.

One of the wishes of the diaspora Kenyans has been for the creation of a ministry or state department to deal with their issues, which has since been granted.

This state department is charged with: dealing with a continuous dialogue with Kenyans living abroad; championing the protection of Kenya’s diaspora rights and welfare; supporting Kenyans in the diaspora in harnessing more opportunities for employment and enterprise development; dealing with diaspora institutions; developing an incentive framework for diaspora remittances; harnessing diaspora savings, facilitating foreign direct investments (FDI) and technology transfers; and mainstreaming the Kenyan diaspora into the national development process.

In 2021, diaspora remittances amounted to Sh400 billion (roughly four per cent of the economy), according to the Central Bank of Kenya.

The diaspora community can support local development in five major ways.

First, they can work with the Ministry of Foreign Affairs and other agencies of the government to facilitate the issuance of a successful diaspora bond that has evaded Kenyans for a long time due to the prevailing cash crunch.

Many countries have tapped into diaspora bonds to finance their local and national needs.

The bond is a win-win case for Kenyans living in the diaspora, who get stable investment opportunities at home, and the government, which gets cheap and affordable credit to finance its ambitious development agenda.

Secondly, the diaspora can promote trade, investments, research, innovation and knowledge/technology transfer locally, arising from the experiences and contacts that they have developed over time in foreign lands.

Many countries, including China, developed by tapping into the knowledge base of the West and repatriating the same to their home countries.

Thirdly, Kenyans in the diaspora should work with the government to operationalise the much-needed diaspora Sacco (savings and credit cooperative society) to increase savings and investments to support the clarion call by President William Ruto and transform the diaspora Sacco into a big bank.

Fourthly, Kenyans living in the diaspora should be encouraged to increase their remittances through a multi-pronged strategy to help the government get the most out of their large and successful diaspora communities.

Fifth, increase utilisation of diaspora human capital through knowledge transfer and collaboration, mentorship and training on various issues of national importance like the economy, debts, education reforms, savings, manufacturing and agriculture transformation.

Dr Giti is an urban manager