Give diaspora incentives

By BUSINESS DAILY
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Summary

• Data showing that diaspora remittances last year defied the Covid-19 pandemic to grow by 10.7 percent to Sh329.41 billion is good news for the country.
• This means that Kenyans living abroad were pumping into the local economy about Sh6.33 billion weekly.
• If put into development projects as opposed to just consumption, the huge remittances can help transform the economy.

Data showing that diaspora remittances last year defied the Covid-19 pandemic to grow by 10.7 percent to Sh329.41 billion is good news for the country.

This means that Kenyans living abroad were pumping into the local economy about Sh6.33 billion weekly.

If put into development projects as opposed to just consumption, the huge remittances can help transform the economy.

The government should now start thinking about how it can incentivise the growing population of Kenyans in the diaspora to help in funding some of the local projects by, for instance, buying infrastructure bonds.

Entities such as Kenya Investment Authority — the agency that markets Kenya as a preferred investment destination— must now start paying attention to the diaspora family as opposed to just targeting foreigners.

Those in the diaspora can be supported to start businesses back home while they continue working as opposed to trying to do so upon returning.

Kenya must not drop the ball in scrutinising the source of money entering the country, those receiving it and how it is being used.

However, while such checks are essential to protect the integrity of the financial system, care must be taken not to disrupt the flow of genuine remittances.