Introduction
Article 10(2) of the Constitution of Kenya 2010 defines patriotism as the devotion and commitment to one’s own country. This is upheld through actions that promote love, loyalty, and dedication to the nation. The Article further states that patriotism is one of the National Values and Principles of Governance and should be upheld by Kenyans living within the country and those living in the diaspora. Approximately 4 million Kenyans live and work abroad.[i] This is an important resource that can be harnessed for economic development and achieving Kenya’s Vision 2030 of becoming a globally competitive and prosperous nation.
The Bottom-up Economic Transformation Agenda (BETA) acknowledges the important role Kenyans living abroad play in socio-economic development. The Fourth Medium Term Plan 2023-2027 (MTP IV) includes provisions for setting up a social welfare system for Kenyans in the diaspora. In addition, Executive Order 1 of 2023 created the State Department for Diaspora Affairs, tasked with fostering ongoing dialogue and engagement with Kenyans abroad and integrating the diaspora into the national development process. The Diaspora Policy (2014) and the Foreign Policy (2014) aim to uphold Kenya’s sovereignty and empower Kenyans living abroad as they advocate for their interests and forge networks, collaborations, and partnerships.
Kenyans’ express patriotism through actions such as financial contribution and economic investment, support for education and healthcare, sports, and cultural engagement. This blog focuses on the contribution of diaspora investment as a tool for patriotism in socio-economic development.
Status and Effects of Diaspora Investments on Patriotism
Remittances and economic investment
Kenyans living abroad play a significant role in Kenya’s economic advancement by sending money home and investing in various ventures. Kenya has consistently been ranked among the top recipients of remittances in Africa.[ii] These financial contributions have a direct impact on household income, spending, and investment, which in turn boost local economies. In 2022, Kenya received approximately Ksh 444.4 billion in remittances, surpassing income generated from tourism and exports. Kenyans abroad can invest directly in Kenyan businesses, either by starting their enterprises or supporting existing companies. The capital inflow into the economy leads to job creation and encourages innovation. In addition, the Kenyan government has introduced diaspora bonds, which are financial instruments specifically designed for Kenyans living abroad. These bonds offer attractive returns and allow Kenyans overseas to contribute to national development initiatives.
The government has started facilitating diaspora investment, for instance through the Commonwealth. The aim is to encourage the diaspora community to invest in businesses, infrastructure, and development projects in their home country and promote economic development, trade, and investment among the Commonwealth member states.
Support for education and healthcare
Kenyans living abroad play a vital role in supporting the education and healthcare needs of their families and communities in Kenya. They contribute to the country’s development by organizing fundraisers for construction projects in schools and hospitals. In addition, some have created scholarship programmes to aid students from disadvantaged backgrounds or those specializing in particular fields. They offer mentorship to students in Kenya, either online or in person, giving valuable advice on career paths. Examples of organizations run by Kenyans abroad that support education and healthcare include the Federation of Kenyan Community Associations in North America (FKCana), Kenya Medical and Educational Relief (KMER), and the Shujaa Foundation.
Sports and cultural engagement
The diaspora plays an important role in projecting Kenya’s image to the world. The country has used sports such as athletics to promote interaction, patriotism, social cohesion, and peace globally. This is an important diplomatic tool as it is the legitimate and official form of facilitating development and peace. Kenya has leveraged on sports by hosting various sports events and taking part in sports activities. Kenyans in the diaspora use sports, culture, and art to bring together people of diverse races, ethnicities, religious and political backgrounds. They always come in large numbers to support their national teams in major sporting events, for example athletics, and rugby. Patriotism in such sporting activities is exhibited by Kenya’s wearing patriotic coloured attires, displaying the Kenyan flag, and singing the National Anthem.
Foreign policy
The diaspora holds a significant position in Kenya’s foreign policy, with the policy emphasizing engagement mechanisms and capacity enhancement for consular services. Efforts to protect the Kenyan Diaspora include reviewing existing bilateral labour agreements and negotiating new ones in strategic areas, facilitated by collaboration with diplomatic missions and consulates worldwide. The government encourages diaspora investment through initiatives such as the Commonwealth, aiming to promote economic development and trade among member states. Other initiatives include promoting free visa access for diaspora members to further enhance engagement and encourage investment and contribution to national development efforts.
Policy Gaps in Diaspora Investment, Patriotism and Emerging Issues
Kenyans living and working abroad play an important role in the development of the country through remittances. However, the cost of remitting money back home through the existing formal channels is still high, leading to the use of informal channels.[1] This makes it difficult for the government to track remittances and advise Kenyans appropriately on investment opportunities. It discourages diaspora investors from using their resources for productive investments.
Although there are several forums within Kenya and abroad, such as investment summits, business conferences, and online platforms, diaspora investors still encounter obstacles in accessing adequate knowledge on investment opportunities[2]. This is due to low awareness and insufficient official channels. Limited information affects their ability to make informed investment decisions.
The contribution from Kenyans in the diaspora plays a significant role in supporting education and healthcare initiatives back home. However, the high fees associated with remittances could discourage those sending low amounts. In addition, many Kenyans abroad may not have a clear understanding of how their contributions are used, or the tangible impact they create, leading to hesitancy in donating. Navigating complex investment regulations, especially for individuals unfamiliar with Kenyan laws, presents a significant barrier to investing in education and healthcare infrastructure.
There are various potential opportunities in skills, knowledge, and expertise by Kenyans abroad, which is not being used in Kenya. This is a sign that the diaspora has a huge and untapped potential to positively contribute to socio-economic development. A significant population of skilled and unskilled Kenyans in the diaspora are exposed to unsuitable working conditions due to the limited national labour migration framework. In addition, regulatory barriers such as cumbersome bureaucratic processes, inadequate protection of property rights, and unclear investment laws constrain diaspora investment and socio-economic growth.
The diaspora communities possess expertise and valuable skills in sports management, cultural preservation, or event organization. These skills are acquired through informal channels such as volunteering at local cultural organizations events, and sports leagues. However, there is a challenge in developing and harnessing this potential.
Conclusion and Recommendations
Promoting diaspora investment as a tool for socio-economic development holds immense potential for fostering patriotism, national unity, prosperity, and driving potential socio-economic development and change. By harnessing skills, resources, and networks of diaspora communities, Kenya could unlock new avenues for innovation, growth, and collaboration, which will promote socio-economic development and the attainment of the Kenya Vision 2030. Therefore, by addressing the above-mentioned gaps, Kenya could create a more enabling environment for Kenyans abroad to invest their resources and expertise in improving the country’s social sectors.
The government, through the Central Bank of Kenya, could consider encouraging the development of innovative and flexible financial products designed to seek negotiation for low transfer fees and favourable exchange rates. Financial institutions in Kenya could strengthen programmes that promote diaspora investment, including accelerators and advocating for the use of formal channels of transactions.
The Ministry of Foreign Affairs and Diaspora Affairs (MOFDA) in collaboration with the Ministry of Labour and Social Protection, and Diaspora Associations could review the existing labour migration framework. This could involve conducting a comprehensive review of existing regulations and laws to find areas of improvement and alignment. Streamlining bureaucratic processes related to investment permits, approval, and licensing by reducing paperwork, and setting up clear timelines for decision-making will go a long way in fostering patriotism and socio-economic development.
The government may consider increasing the number of platforms that help facilitate networks and partnerships between diaspora investors and entrepreneurs, local businesses, and stakeholders. This could be in the form of bench making programmes, promoting networking events, and investment forums to create suitable investment opportunities and partnerships.
[1] Kenya Diaspora Policy, 2014
[2] Ministry of Foreign Affairs and Diaspora Affairs (Draft Strategic Plan), 2023-2027
[i] Ministry of Foreign Affairs (Embassy of the Republic of Kenya in Israel), 2022
[ii] World Bank (2022)
Authors: Christopher Mutuiri- KIPPRA Young Professional
Jepkogei Barsoget –KIPPRA Young Professional
