This archive report was first published on 7 December 2019.
Kenya's diaspora community has become a lucrative target for local businesses seeking to tap into the growing remittances from abroad.
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.
Remittances have maintained a growth trajectory at an annualized rate of 10 percent, prompting local companies to take note.
Username Investment Chief Executive Officer Rueben Kimani revealed that 30 percent of the company's yearly revenues is now streaming from the diaspora, mirroring the immense opportunities represented in Kenya's global community.
“We have opened all our doors to the Diasporas since our first contact two years ago. Having visited the United States and Europe, our future plans are to spread our reach in Asia, Australia and the Rest of Africa,” Kimani said.
Equity Bank has also become a forerunner in the banking sector, supporting the remittance of Ksh.100 billion in nine months to September, thereby shoving up the Group's foreign exchange earnings through fees and commissions.
However, the bulk of the remittance is drawn from Kenyans living in the North America, with Europe representing the second top market by remittance volumes.
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.
