Building Bridges: Mudavadi’s Vision for Enhanced Collaboration with Kenyans Abroad

Diaspora communities have emerged as critical economic players, contributing significantly to their home countries through remittances. In Kenya, the government is actively seeking to strengthen its collaboration with the diaspora, particularly focusing on reducing the costs associated with remittances. This initiative aims to enhance the socio-economic impact of funds sent back home, ultimately improving the livelihoods of countless families and fostering national economic growth.

The Need for Cost Reduction in Remittances

The Prime Cabinet Secretary, Musalia Mudavadi, recently highlighted the government’s commitment to addressing the high costs associated with sending money from the diaspora back to Kenya. Speaking at the Kenya School of Government during the launch of the first strategic plan for the State Department for Diaspora Affairs, Mudavadi emphasized the need to limit remittance costs to a target of 3% of the transaction value. This objective aligns with the United Nations Sustainable Development Goal (SDG) 10 (c), which aims to reduce remittance costs and ensure that more money reaches beneficiaries.

Despite the rising volume of remittances, which grew to USD 2.8 billion in the first seven months of 2024, the costs associated with sending money remain prohibitively high. Mudavadi noted that these costs can diminish the potential benefits that families and communities derive from remittances. By reducing fees, charges, and hidden costs imposed by remittance service providers, the government hopes to maximize the financial resources available to the intended recipients.

Projected Growth of Remittances

The statistics presented by Mudavadi reflect a positive trend in diaspora remittances, with projections indicating a rise from USD 4.19 billion in 2023 to USD 4.8 billion in 2024—a remarkable increase of 14.6%. This upward trajectory places Kenya on track to achieve its ambitious remittance target of Sh1 trillion annually by the end of the Strategic Plan period in 2027. The increased inflow of remittances not only enhances investments but also plays a vital role in strengthening the country’s balance of payments and stabilizing the Kenyan shilling against external pressures.

Diaspora Contributions to the Economy

Kenyans living abroad make substantial contributions to various sectors of the economy, including education, health, housing, agriculture, tourism, and trade. The financial support provided by the diaspora facilitates investments that have transformative effects on local communities. As highlighted by Mudavadi, these contributions create a ripple effect, fostering social development and economic growth.

The government recognizes that enhancing diaspora engagement is crucial for harnessing this potential. By creating policies and frameworks that facilitate diaspora investments, the Kenyan government aims to create an enabling environment that encourages the diaspora to contribute actively to their home country’s development.

Portability of Social Benefits

One of the critical issues affecting the diaspora is the challenge of social benefits portability. Many Kenyans abroad face a dilemma when considering returning home, as they risk losing valuable social benefits tied to their host countries. Mudavadi stressed the importance of addressing this issue to facilitate a smooth transition for those wishing to return.

The facilitation of social benefits portability, as outlined in Article 22 of the Global Compact for Migration, offers several advantages. It allows diaspora members to migrate back home safely while retaining access to essential services, such as mental health care. By addressing this concern, the government can create a supportive environment for those considering returning home, ultimately enriching the local workforce with skilled individuals.

Enhancing Trust and Confidence

To bolster the diaspora’s trust and confidence in government initiatives, Mudavadi emphasized the importance of championing their welfare and protecting their rights. The government’s proactive approach to addressing the needs of the diaspora community is pivotal in building strong relationships. Initiatives that safeguard their rights and promote their contributions to the national GDP through remittances will enhance the overall welfare of Kenyans abroad.

Moreover, the government is taking steps to position Kenya as a global leader in skilled labor export. By deepening collaboration and strategic partnerships with the diaspora, the State Department for Diaspora Affairs aims to strengthen policy, legal, and institutional frameworks that govern diaspora affairs. This approach not only enhances the diaspora’s contributions but also fosters a sense of belonging and engagement with their home country.

Digital Innovation for Diaspora Services

Recognizing the importance of leveraging technology, the Kenyan government has onboarded critical services for the diaspora on the eCitizen platform. This innovation allows members of the diaspora to access government services seamlessly from anywhere in the world. By making government services more accessible, the government aims to streamline processes and enhance the overall experience for Kenyans living abroad.

Mudavadi highlighted several achievements in this area, including the development of the Diaspora Policy 2024, which seeks to respond better to the needs of the diaspora. The evacuation of Kenyans from high-conflict areas and strengthened dialogue with diaspora communities reflect the government’s commitment to addressing their concerns and fostering a supportive environment.

Strengthening Partnerships and Investments

The State Department for Diaspora Affairs has made significant strides in strengthening partnerships with the diaspora through high-level engagements. Mudavadi noted that over 19 countries have been engaged in discussions regarding investment opportunities, mental health services, consular services, and information sharing. These engagements aim to create a robust support network for Kenyans abroad, ensuring that they remain connected to their home country.

Additionally, the government has facilitated the evacuation and repatriation of over 1,400 Kenyans from various countries, providing mobile consular services to thousands of citizens. By offering essential services, such as issuing IDs and passports, the government aims to enhance the diaspora’s sense of security and belonging.

Labour Migration and Mobility Agreements

In pursuit of enhancing labour opportunities for Kenyans abroad, the State Department has successfully negotiated Comprehensive Labour Migration and Mobility Agreements with Germany and initiated agreements with Austria, Qatar, Saudi Arabia, and Canada. These agreements aim to create safe pathways for skilled Kenyans to access job opportunities abroad while ensuring that their rights are protected.

The government’s commitment to facilitating safe labour migration is evident in its efforts to provide training and resources to ensure that migrant workers possess the necessary skills to thrive in the international job market. Initiatives like the Pearson Vue Professional Test Center and Ready Care Staffing Africa Limited have been established to support this objective.

Conclusion

The Kenyan government’s proactive approach to strengthening collaboration with the diaspora through reduced remittance costs, social benefits portability, and digital innovation reflects its commitment to fostering economic growth and development. As remittances continue to rise, the government recognizes the importance of creating an enabling environment for the diaspora to contribute actively to their home country’s progress.

By enhancing trust and confidence in government initiatives, the State Department for Diaspora Affairs aims to cultivate strong relationships with Kenyans abroad, ultimately positioning Kenya as a global leader in skilled labor export. With a focus on innovation, partnership, and investment, Kenya is well on its way to realizing its ambitious remittance targets and enhancing the socio-economic landscape for all Kenyans.