Kenya’s Diaspora Community Defining a New Rich Market for Local Firms
Kenyan companies led by those in real estate and financial institutions are working tirelessly to have the diaspora community buying into their products and services.
The increased diaspora remittances have greatly contributed to the realization that the segment has unlimited potential as a source of new revenues.
As a result, the local businesses have expanded their global reach by sponsoring events and hosting cocktails to interact and market themselves to the newly discovered monies.
“Most Kenyans living abroad want to have something for themselves back home. As such we are letting them know that Kenya has changed and that the political climate is now supportive of investments,” Optiven Group Chief Executive Officer George Wachiuri said.
According to data from the Central Bank of Kenya (CBK), Kenyans living abroad sent back Ksh.237.4 billion in the first 10 months of 2019, up from Ksh.227.8 billion over the preceding year.
Diaspora remittances have maintained a growth trajectory at an annualized rate of 10 percent to
According to estimates, 70 percent of all remittances end up in welfare and consumption with relatives living abroad repatriating funds to lend a hand to family members back home.
As such, many in the diaspora have taken up planned investments to mitigate risks having found more confidence in the legal backing of companies.
Having been hurt by family members through deception, many have become more trusting of firms as they are entities one can sue unlike dealing with their kin.
The bulk of the remittance is drawn from Kenyans living in the North America with Europe representing the second top market by remittance volumes.
In spite of the retention of a double-digit growth in repatriated funds, the Kenya Diaspora Alliance (KDA) reckons remittances can grow at an even faster pace through the leveraging of incentives.
“Remittances have not benefited from what foreign direct investments (FDIs) get. We would like to see the enactment of supportive measures such the matching of a dollar with another from government,” KDA Chairperson Shem Ochuodho said.
The diaspora community is expected to hold its annual home coming convention later this month.