The Kenyan government will soon form a council that will
enhance the business activities of Kenyans in the diaspora and provide them
with increased opportunities to reap additional benefits from their earnings in
their countries of destination.
The National Diaspora Council of Kenya (NADICOK) — the
name of the body being mooted — will lobby for the enactment and implementation
of policies, which can assist Kenyans in the diaspora to run their business
activities efficiently in Kenya as well as in the diaspora. According to Mr.
Zachary Muturi, the Director for Diaspora and Consular Affairs at the Ministry
of Foreign Affairs, the council’s role would be to provide advisory information
as well as formulate the necessary investment vehicles.
Mr. Muturi was speaking at the 2nd Annual Kenya Diaspora Trade and Investment Conference on Saturday 31 May 2014, convened by the
Bank of Africa and Kenya’s embassy in France. Kenyan ambassador to France,
Salma Ahmed, encouraged Kenyans in the diaspora to pay more attention to
business ventures.
Ambassador Ahmed also promised that the embassy would
negotiate for special terms with commercial banks in the country to boost
Kenyans who would wish to undertake business opportunities in France.
Furthermore, the embassy promised to facilitate business transactions for
Kenyans residing in France as well as other countries, such as, Portugal and
Serbia.
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| Ambassador Ahmed (centre) flanked by other participants at the 2nd Annual Kenya Diaspora Trade and Investment Forum (Image Credit: geraldbaraza.blogspot.com) |
The establishment of NADICOK is good news for the Kenyan
diaspora, which has always perceived their government as one that pays little
attention to their welfare. An
article by Paul Kerre in January 2014 captures the
dissatisfaction of Kenyans in the diaspora with their government. Key among
their complaints is the frosty relations with Kenyan Foreign Missions in
various countries, which they consider to be disinterested in matters affecting
Kenyans living abroad, such as, domestic violence and suicide. According to
Kerre, the diaspora feels that the government’s focus is dedicated to their
remittances for investment purposes while ignoring other issues affecting them.
Kenya is one of the top remittance receiving countries
in sub-Sahara Africa. According to the World Bank’s 2011 Migration and Remittances Factbook,
the country received $1.8 billion worth of remittances in 2010; only Nigeria
($10 billion) and Sudan ($3.2 billion) received more remittances from their
diaspora. Another study by the World Bank in 2010 titled, Remittances to Kenya, reveals that 32 per
cent of the respondents interviewed use about half of the remittances received
on daily expenses, such as, clothes, food, medicine and housing.
Harnessing the Developmental Potential
of Kenyans Living in the UK, a
study conducted by the International Organisation for Migration (IOM) in 2010
revealed that 24 per cent of the 78 respondents interviewed had remitted money
for investment purposes. Forty-two per cent of these investments had been
unsuccessful whereas 46 per cent were successful. For those who had invested
unsuccessfully, the most cited reason for unsuccessful investments was
inability to access credit facilities (40%).
Similarly, 40 per cent of the respondents stated that their investments failed because they did not have sufficient information regarding formal investment procedures in the country. Other challenges cited included poor management (33%), exorbitant expenses (27%) as well as inadequate infrastructure (26%).
Similarly, 40 per cent of the respondents stated that their investments failed because they did not have sufficient information regarding formal investment procedures in the country. Other challenges cited included poor management (33%), exorbitant expenses (27%) as well as inadequate infrastructure (26%).
Do
you think NADICOK will improve investment opportunities for Kenyans in the
diaspora?
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