How to get Kenyans in the diaspora to invest more back home

Miniature model house standing on a stack of coins. (Courtesy/GettyImages)

For many Kenyans living abroad, investing back home is both a dream and a gamble. Stories abound of hardworking expatriates sending their life savings back home only to return and find a non-existent investment. Yet, despite these concerns, the government is aggressively courting diaspora funds by encouraging Kenyans abroad to invest back home. With this, the government also hopes to get a significant slice of the pie through a planned diaspora bond, which aims to raise $500 million (Sh64.75 billion) by 2026.

Kenya's diaspora community is a formidable economic force. Last year alone, they sent home $4.94 billion (Sh640.75 billion), an increase of 18 per cent compared to 2023. This by far surpasses foreign direct investment and donor funding. Interestingly, this is mostly for basic needs like food and other living expenses, according to data from the Central Bank of Kenya.