By Silas Apollo
The remittance inflows to the country from Kenyans living in the diaspora has increased significantly over the past decade reaching a record of USD 4.028 billion in 2022.
According to Treasury Cabinet secretary Njuguna Ndung’u, in the last ten years, the country has witnessed a significant increase in cash remittances from those living outside the country.
Speaking while appearing before the National Assembly’s Committee on Diaspora Affairs and Migrant Workers, Prof Ndung’u added that the United States of America remains the largest source of remittances into Kenya, accounting for 58 percent.
Remittances have been cited as an important source of foreign exchange to the country. The government has over the years termed the inflows as a positive contribution towards assisting families across the country, including vulnerable households.
The CS argued that the increase in remittances had largely been influenced by policy decisions made by both the National Treasury and the Central Bank of Kenya to aid easy flow of cash.
He said that for starters, the ministry had developed wide ranging banking and financial sector reforms to help lower the cost of money transfer, a transformation that had become a gamechanger for Kenyans sending money home.
The CS also noted that services such as M-Pesa had also been expanded beyond Kenya’s borders alongside partnerships between the Diaspora Association and banks to allow them handle larger volumes of inflows.
The transfers, the CS added, were also much cheaper and took less time to make, attracting more of those in the diaspora seeking to send remittances back to the country.
The CS further disclosed that the Central Bank conducted Kenya’s first Diaspora Remittances Survey between 19th March and 17th May 2021 to collect valuable information to improve quality of remittance statistics.
He said that the Central Bank had developed a range of financial products targeting the diaspora including successful infrastructure bonds.
The MPs however noted the need to expand focus beyond Kenyans living in the United States to allow more Kenyans living elsewhere across the globe to benefit from the facilitation already in place for the diaspora.
Members of the committee however asked the CS to further help improve facilitation to the diaspora community to promote their participation in the economic development of the country.
They cited a number of constraints that the community faces in their bid to invest locally like the lack of information on investment opportunities and government policies as well as difficulties in money transfer.
They also cited other concerns such as a lack of safeguards that guarantee the investments of those living outside the country, diplomatic assistance to replace passports and harassment by customs officials at the airport.
The committee which was established at the beginning of the 13th Parliament, has in the last few weeks been engaging relevant stakeholders in a bid to brainstorm on legislative interventions required to improve the welfare of Kenyans in the Diaspora and Migrant Worker.
In a bid to brainstorm on legislation interventions crucial to mainstream diaspora and migration issues, the Committee this last weekend engaged Dr Luchetu Likaka, an expert on matters Labour migration and Diaspora Affairs.
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