Kenyans Abroad to Send Money to The Govt

The Kenyan government is set to introduce a savings scheme for its diaspora community once the Labour Migration and Management Bill, 2023 completes its final stages of ratification.

According to the bill, the Foreign Affairs Ministry will collaborate with relevant Kenyan missions to establish a voluntary savings scheme for migrant workers, aiming to boost investment in the country.

The proposed scheme allows the Cabinet Secretary for foreign affairs to negotiate favorable terms with financial institutions regarding the investments of contributions made by the diaspora.

The Treasury Cabinet Secretary will be regularly briefed on the scheme’s status and will, in conjunction with the foreign affairs counterpart, formulate policies and programs to incentivize migrant workers to invest in Kenya.

A government-run database will be established, containing comprehensive information on programs and projects in Kenya available for investment by migrant workers.

The bill emphasizes measures to prevent fraudulent practices hindering investment, underscoring the government’s commitment to creating a secure and transparent savings environment.

President William Ruto’s vision is in alignment with this initiative, aiming to involve Kenyans abroad significantly in nation-building.

He highlighted the importance of diaspora remittances on December 10, stating that repatriated dollars would contribute to stabilizing the currency and economy, addressing challenges related to exchange rates.

President Ruto’s commitment to engaging with the diaspora was evident during his interactions with Kenyans living in the United States in December 2023.

The establishment of this savings scheme is a strategic move, reflecting the government’s recognition of the diaspora’s potential impact on economic stability and growth.

In addition to these developments, the bill outlines collaborative efforts between the foreign affairs and treasury departments to implement measures preventing fraudulent practices. This underscores the government’s dedication to ensuring the security and effectiveness of the savings scheme.

As Kenya looks to leverage diaspora remittances as a crucial economic driver, President Ruto’s engagement with international partners, such as Italy, demonstrates the government’s broader strategy to seek support and collaboration on key economic fronts.

The proposed savings scheme for Kenyans in the diaspora is a pivotal step towards harnessing the financial potential of migrant workers. President Ruto’s commitment to this initiative reflects a broader vision for economic stability and growth, emphasizing the significance of diaspora contributions to the nation’s development.