Diaspora Kenyans to hold investment forum on public-private partnerships, youth engagement and governance
I have known Dr. Shem Ochuodho for a long time since college days at Nairobi University. He actually tried to help me learn post-graduate computer science at the Computer College at Nairobi University. We were also at the Student Representative Council (SRC) of the Students Organization Of Nairobi University (SONU) together in the 1980s. He is a good person.
Now I see Dr. Shem Ochuodho is holding a convention for Kenyans in Diaspora to put money and invest at home. I am for that 100%. But I have to say this. The remittances we send home is nothing compared to our capacity as Kenyans out here to invest in our country. And we send them in hundreds of billions every year. That we will continue to do because it is for our families and their lives and education.
My niece called me a day ago we had to pay the rent for her house in Thika where she is in college. I need to give her some pocket money too for food. My nephew, who is a teacher had his motor bike messed up so I have to send money to fix that. That is what remittances are. And we send them.
What Kenyans in the Diaspora need are investment opportunities.
Let me propose a Kenyan Diaspora Investment Plan (KDIP).
Here is the simple math about it.
As a Kenyan Resident in Canada for 30 years now, I can use my money in Canada to start a business in Kenya and buy industrial products from Canada and take them to Kenya to start a business without taxation to improve our economy. The Diaspora capacity for that is incredibly huge. Let’s go there as a country. It will be good for us.
An umbrella body representing Kenyans living abroad will next month host a convention in Nairobi where investment opportunities will be showcased.
The Kenya Diaspora Alliance (KDA), whose membership stands at around 250,000, has organized the Kenya Diaspora Homecoming Convention that will be held for three days beginning December 13.
KDA chairman Shem Ochuodho said the meeting, in its fourth edition, will provide a platform for stakeholders to converge, network, transact, and share success stories from around the world.
“For a globally distributed entity that remits over Ksh200 billion annually, the Kenyan diaspora is a huge untapped goldmine and game-changer whose time to mainstream into the national socioeconomic fabric cannot wait any longer,” Dr Ochuodho said in a statement.
The conference will feature a series of smaller meetings; focusing on various pertinent topics, key among them investment, public-private partnerships, youth engagement, and governance.
The main business areas of interest will be the environment and waste management, renewable energy, agri-business, infrastructure, real estate, and IT-enabled services.
Opportunities at the national and county government levels will also be on display.
Inflows from the diaspora in the nine months through September rose by Sh10.88 billion ($105 million) to a record Sh143.30 billion ($1.382 billion), the latest data from the Central Bank of Kenya shows.
Diaspora remittances overtook tea exports and tourism receipts to become Kenya’s largest foreign exchange earner three years ago.
An estimated 75 percent of the tens of billions of shillings sent in every month, however, goes into domestic consumption — largely family support, school fees, medical bills, and funeral expenses.
Most of Kenyans abroad, Dr Ochuodho said, are worried about the protection of their investment back in the country and usually seek reassurance from authorities and partners before sinking cash into new ventures.
Fund managers have recently joined commercial banks — which have been proactive in developing savings and investment products such as mortgages — seeking to tap the diaspora cash through investment vehicles such as unit trusts.
“The trend is still leaning towards the consumption rather investment side, but there’s some traction that is being made towards development,” said Churchill Ogutu, a senior research analyst at Genghis Capital.
“As we are seeing remittances improving, there will be more need of putting into investment rather than consumption.”
The event’s local organizing committee chairman Abdulmalik Gichuki said about 1,000 guests are expected at this year’s forum themed ‘‘Knowledge Management and Youth Engagement.’’
Here is my suggestion for Dr. Shem Ochuodho on the Diaspora Convention scheduled for December this year:
Give Kenyans in Diaspora opportunities to invest in their country which they love very much. I live in Canada and come to Kenya every time. I have land in Kenya from my family. I have four sisters in Kenya and they are in business.
In 2018 when we were in Kenya with my then 21-year-old son we went to the land office in Bondo because the Title Deed on our land is in my name. Me and my son wanted my sisters to build houses in our land which is just next to the highway in Bondo Town.
We were told to sign an affidavit to say me and my son allow my sisters and his aunts to build houses in the land. This was because even though the 2010 Kenya constitution allows daughters to inherit their parental land there is no system to do it.
Now one of my sisters has built four houses on the property and I was telling her to stop because she is going to build houses in the whole land. Me I have only built two. So we just laugh about it.
Here is the big deal. Kenyans in the Diaspora have access to resources and financing that can transform our country in very big ways at the industrial level.
How do I invest as a Kenyan in Canada? If you are smart you buy a house. It will cost you about $ 500,00.00 at least. That is your life investment. You will pay for it for 20 years and it is all you have.
If a Kenyan put that $ 500,000.00 investment in Kenya it would be great for them and for the country. How do we do that?
Number one give tax breaks for Kenyans in Diaspora to invest in the country.
Allow Kenyans out here to invest in the country without Excise Duty and all those VAT taxes and Kenyans will bring money and investments to the country in amounts never seen.
Remittances we pay for health and school fees. Give us Investments and Diaspora Kenyans can put Sh. 10 trillion very soon in our country. Try it.
Adongo Ogony is a Human Rights Activist and a Writer who lives in Toronto, Canada