Musalia lauds diaspora contribution to economy

Prime Cabinet Secretary Mudavadi has expressed government’s deep gratitude to the Kenyan Diaspora globally for their substantial contribution to economic growth through remittances.

Mudavadi said their efforts have played a crucial role in stabilising the shilling against leading global currencies.
He said the government is working towards defining and adopting a clear and different strategy in forging a stronger partnership with the Kenyan Diaspora.

“If we go into numbers, you have surpassed coffee, tea and even our horticulture. Basically, Kenyans in the diaspora are very key in stabilising the rate of the shilling against hard currencies. If Kenyans in the diaspora slightly slide from the trajectory we are in, then inflation can be a problem back home,” said Mudavadi.

Mudavadi said this when he met the Kenyan Diaspora in Namibia, on the first day of his official visit.

“We are now looking on more serious aspects of even working on the diaspora bond. Earlier it was mooted but numbers in terms of the resource-base had not reached a threshold that could make a powerful statement if you went for the diaspora bond. But today the figures indicate that Kenya is now ripe for a diaspora bond, where you can help in investing in key infrastructure whether it is the roads, hospitals or institutions that matter and have a serious impact on the people,” he added.

Statistics indicate that money sent home by Kenyans living abroad continued on a growth trajectory to hit a record Sh671 billion ($4.19 billion) in 2023, significantly boosting the country’s current account balance amid falling export revenue.

Sharing proposals

The Prime Cabinet Secretary encouraged the diaspora to actively engage in shaping the upcoming Diaspora Policy Paper, soon to be tabled in Parliament, by sharing their insights and proposals through Kenya’s High Commissions and embassies.

“We have had Kenya’s foreign policy sometimes on paper but one thing has never quiet happened that it has never been owned by the people of Kenya directly since it has been the preserve of the executive. We in the process of now working on a sessional paper on Kenya’s foreign policy which we want to take to parliament so that Kenyans can debate and have a bigger say in what they believe should be their foreign policy,” said Mudavadi.

Kenyans living and working in Namibia called on the government to step up efforts for the introduction of direct flights between Nairobi and Windhoek.

They said if there are any protocol or security bottlenecks that need to be untangled, key negotiations need to be fast-tracked by the two sides.

Led by the chair of their association Dan Mule, they said the introduction of direct flights will help boost the growth of business and investments between Kenya and Namibia thus largely contributing to the growth of Kenya’s GDP.

“Direct flights will open many opportunities that remain untapped. When we have exports like tea coming direct from Kenya to Namibia, it is a sign of potential growth in our export market,” said Mule.