By OPCS Press Service and Hope Barbra
The Government is seeking to reduce the cost of sending money from the diaspora back to respective countries of origin for greater economic impact.
Similarly, Diaspora remittances grew to USD 2.8 billion from January to July 2024, compared to USD 2.4 billion during a similar period last year.
Prime Cabinet Secretary, Musalia Mudavadi has said there have been lengthy discussions on the need to decrease costs associated with sending money from members of the diaspora back to their countries of origin.
“The remittance costs remain high despite calls for a reduction. For the viability of social benefits portability, the transaction costs must be reduced. I therefore encourage all stakeholders to join together, in Kenya, regionally and globally, to bring the costs of remittances to the global target,” he added
The focus is on the need to limit the cost of remittance to 3 percent of the value of the money transfer, in line with the United Nations Sustainable Development Goal (SDG) 10 (c).
“Discussions include policies and initiatives that will ensure that fees, charges, and hidden costs that remittance service providers impose are kept at a minimum, thereby maximizing the amount of money that reaches the intended beneficiaries,” said Mudavadi.
Mudavadi said the analysis of the trend over the first seven months of 2024 points to a projected rise in annual remittances from USD 4.19 billion in 2023 to USD 4.8 billion in 2024, a 14.6 percent increase.
“This exponential growth puts the country on track towards attaining the remittance target of Sh1 trillion annually by the end of the Strategic Plan period in 2027,” the CS stated.
He said the increase in remittances not only enhances investments but also helps to strengthen Kenya’s Balance of Payments and reduce the Kenya shilling’s vulnerability to external pressure.
“Kenyans abroad make direct investments locally, providing social support or creating an enabling environment for Kenyan exports. Their contribution is evident in various sectors of the economy including education, health, housing, agriculture, tourism, and trade,” the Prime CS stated.
Mudavadi, who is also the Foreign and Diaspora Affairs Cabinet Secretary, was speaking at Kenya School of Government (KSG) where he launched the first strategic plan for the State Department for Diaspora Affairs, a department under his ministry.
At the same time, he urged the State Department to take up the leadership role in a conversation about a framework that will allow the diaspora to move back to their countries of origin comfortably.
Whereas some diaspora Kenyans are ready to return home, the Prime CS said they grapple with their social benefits tied to their host countries, and if they leave, they lose the benefits.
“Facilitation of social benefits portability will allow the diaspora to migrate back safely and in an orderly manner, in line with article 22 of the Global Compact for Migration. Social benefits portability has key advantages including reducing the cost of remittances and enabling access to mental health services for those returning home,” he explained.
At the same time, Mudavadi said that his office will enhance diaspora trust and confidence by championing their welfare and protecting their rights and also their contribution to GDP growth through higher remittances.
He also said his office will spearhead initiatives aimed at positioning Kenya as a global leader in skilled labor export, deepening collaboration and strategic partnerships with the diaspora, and strengthening the policy, legal, and institutional frameworks underpinning diaspora affairs.
Taking advantage of the ever-growing digital space, Mudavadi said the department has also onboarded critical services for the diaspora on the eCitizen platform, making it easier for the diaspora to access government services seamlessly at any time from anywhere.
Some of the achievements he said have so far been made include the development of the Diaspora Policy 2024 to respond better to the needs of the diaspora, evacuation of Kenyans from high conflict areas in various parts of the world, including Sudan, Israel, Palestine, and Lebanon and strengthened dialogue and partnership with the diaspora.
The department has also created an enabling environment for diaspora investments and developed a global labor market strategy.
Diaspora Affairs Principal Secretary, Roseline Kathure Njogu, stated that the growth of the State Department took concerted effort and invaluable support from the 3-4 million Kenyan Diaspora across the globe.
Since inception, she said the State Department has made progress including strengthened diaspora partnerships through high-level engagements with Kenyans in over 19 countries during State and High-Level visits.
“The high-level visits were complemented by virtual diaspora engagements on a range of topics, such as investment, mental health, consular services, and information sharing,” she said.
She said that there has also been evacuation and Repatriation of over 1,400 Kenyans from various countries. provision of Mobile Consular Services ((MCS) to over 13,000 Kenyans in about 150 cities across 46 countries.
The services, she said, included the issuance of IDs, passports, certificates of good conduct, birth certificates, documents attestation, dual citizenship, emergency travel documents, and Regaining of Citizenship.
