Diaspora remittances rise despite fears over Trump policy

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The amount of money sent to the country by Kenyans living abroad grew over the first half of this year despite fears that Donald Trump’s harsh stand on immigrants would see the remittances stagnate or drop.

Kenyans abroad sent home Sh92 billion over the first six months of 2017, a four per cent increase compared to Sh88.3 billion in the first half of 2016.

According to Central Bank of Kenya data, the remittances have steadily risen each month in 2017 except April, when there was a drop compared to a similar month in 2016.

Remittances have over time grown to be the single largest foreign exchange earner, towering over other productive sectors such as tourism, tea, horticulture and coffee.

According to a Ministry of Foreign Affairs report, Kenya got Sh1 from its citizens abroad for every Sh3 it got from exporting goods and services last year, with diaspora remittances at Sh170 billion and exports at Sh578.1 billion.

Most of the money remitted to family is largely consumed and also invested in real estate.

The Government has sought to put in place initiatives to make it not only cheaper to send money back home but also get Kenyans living abroad to invest in various economic sectors.

It recently published guidelines for Kenyans working abroad on the most effective way to send money home as well as make meaningful investments.

The guidelines, Send Money and Invest in Kenya, are aimed at helping Kenyans in the diaspora send money cheaply, open accounts and target investments back home.

“Government can leverage on the remittances from Kenyans residing abroad and channel them towards national development,” said Diaspora and Consular Affairs Director Washington Oloo.

The Government has set targets to cut the charges on sending money home from foreign countries to less than three per cent of the amount transacted. The plan will be implemented by the newly-established African Institute of Remittances (AIR), hosted by the Foreign Affairs ministry.

The remittances are, however, threatened by the Trump administration’s immigration policy that has exposed millions of undocumented workers to deportation — among them over 30,000 Kenyans that are thought to be in the country illegally.