The Government is seeking to have the cost of sending money from the diaspora back to respective countries of origin reduced for greater impact.
Prime Cabinet Secretary, Musalia Mudavadi has said that 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 focus is on the need to limit the cost of remittance to 3 per cent 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, who is also the Foreign and Diaspora Affairs Cabinet Secretary, was speaking at Kenya School of Government (KSG) as he launched the first strategic plan for State Department for Diaspora Affairs, a department under his ministry.
“The remittance costs remain high despite calls for reduction. For the viability of social benefits portability, the transaction costs must reduce. 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.
According to the PCS, 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.
He said an 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 per cent 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 help 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.
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 labour export, deepen collaboration and strategic partnerships with the diaspora and strengthen the policy, legal and institutional frameworks underpinning diaspora affairs.
Taking advantage of the ever-growing digital space, Mudavadi said the department has also on boarded critical services for the diaspora on the eCitizen platform, making it easier for the diaspora to access government services seamlessly at anytime from anywhere.
Some of the achievements he said have so far been made include 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 labour market strategy.
Diaspora Affairs Principal Secretary, Roseline Kathure Njogu, stated that the growth of the State Department took concerted effort and invaluable support by 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 issuance of IDs, passports, certificates of good conduct, birth certificates, documents attestation, dual citizenship, emergency travel documents and Regaining of Citizenship.
The department has also concluded negotiations and signed a Comprehensive Labour Migration and Mobility Agreement with Germany, and last week an MoU on Migration and Mobility with the Government of Austria, and initiated BLAs with among others the State of Qatar, the Kingdom of Saudi Arabia, Canada, in collaboration with Ministry of Labour and Social Protection.
The State Department also facilitated safe labour migration (e.g. nurses to Saudi Arabia and seasonal workers to the UK) opening of facilities to ensure migrant workers have the necessary skills to fit in the international job market (Pearson Vue Professional Test Center and the Ready Care Staffing Africa Limited).
