Indigenous Firms Woo Kenya’s Diaspora Community to Invest in Kenya

Local companies have stepped up on their strategies to attract Kenya’s diaspora community as they increasingly view the segment as a source of new revenues which will make them profit.

According to data from the Central Bank of Kenya (CBK), Kenyans living abroad sent back Ksh 237.4 billion in the first ten months of 2019 up from Ksh 227.8 billion over the preceding year.

Diaspora remittances have maintained an upward growth trajectory at an annualized rate of 10% to see local companies take note. The diaspora has shown the will to take up planned investments to mitigate risks having found more confidence in the legal backing of companies.

“Most Kenyans living abroad want to have something for themselves back home. As such we are letting them know that Kenya has changed and that the political climate is now supportive of investments,” Optiven Group Chief Executive Officer George Wachiuri says. “Consequentially, the home-grown businesses have intensified their global reach to host rounds of cocktail and sponsored events world over with the view of lining their pickets with newly found capital.”

According to Username Investment Chief Executive Officer, Reuben Kimani, 30% of the company’s yearly revenues is now streaming from diaspora to mirror the immense opportunities represented in Kenya’s global community. ‘We have opened all our doors to the Diasporas since our first contact two years ago. Having visited the United States and Europe, our future plans are to spread our reach in Asia, Australia and rest of Africa.’

The lure of the diaspora has found anchoring in the lack of planned investments with companies tapping onto the gap to mobilize funds through real estate projects and diaspora tailored unit trusts which cover trades in the money market, bonds and equities.