Kenya Diaspora Alliance chairperson, Shem Ochuodho during a past function at Nairobi [Photo/citizen digital]Industry experts have urged Kenyans in the diaspora to channel their investments in government bonds and resources.
The experts' advice comes with the latest data from the Central Bank indicating that October inflows rose 5.3 percent to stand at Sh19.2 billion ($185.5 million ) compared to September’s Sh18.2 billion ($176.09 million).
This further indicates the remittances have gone up by 23.1 percent or $42 million (Sh4. 15 billion).
According to Shem Ochuodho, the chairperson of the Kenya Diaspora Alliance, the inflows are from the approximated three million Kenyans living abroad with a larger portion of it coming from North America and Europe.
The experts, led by Gabriel Negatu, African Development Bank regional director noted that investment in productive sectors such as real estate is not enough and has limited impact on the growth of the gross domestic product.“A bigger and better way to channel these resources should be through government papers, bonds, and banks financing the bonds in a bid to be more productive,” Negatu told the Star on the sidelines of the ongoing two-day conference by the Kenya Diaspora Alliance.
They further called upon the government to simplify government-diaspora relations by simplifying tax and legal processes for Africans that want to invest in the continent.“The diaspora is not just a cash cow or a gold mine. There are other resources including networks and skills, that can be utilised for the growth of the continent. There is need to close the financial gap in Africa through sustainable development and patient capital,” Negatu said while urging the delegates to view the diaspora as a resource that goes beyond money remittances.The calls come only two weeks after the alliance proposed the creation of a diaspora office in each county to enhance devolution, and prevent the counties from over-reliance on the national government and foreign aid organisations to drive growth.