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KENYAS DIASPORA CAPITAL Examining The Impact of The Diaspora on Kenyas Politics & Development By: Agnes Gitau and Isaac Kute INTRODUCTION AND BACKGROUND This paper explores the role the Kenyan Diaspora plays in the development of the country. Traditionally, brain drain and loss of the social and human capital from those emigrating from Kenya has been the focus of strategic discussions when we examine Kenyas development and lost opportunities. However, the Diaspora has a key role to play in an increasingly globalized world where borders mean less and the internet makes the world a smaller place. It is imperative that the government, civil society and the public and private sectors engage effectively with the Kenyan Diaspora to help shape the dreams and hopes of Kenyans the world over. The most tangible impact the Diaspora makes is through remittance as an informal vehicle for the economic development of the country. On 2010 estimates alone, the amount of money remitted to Kenya by the Diaspora was at least 5.3% of Kenyas total Gross Domestic Product (GDP). The key factor though, is that these remittances are directly targeted at individuals - family members, relatives, friends, business associates, etc, and are directly responsible for the economic empowerment of over 14% of the Kenyan population. These remittances and the economic impact they are responsible for should be further used as a platform for promoting effective business and enterprise, political engagement, promotion of human rights, development of our civil society, improvement of our education and health infrastructure and to help in the process of building the Kenya that we want for our children and grandchildren. Key Facts And Highlights1
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Total remittance to Kenya for 2010 was $1.9 Billion The average recipient received $105 remittance 7 times a year. 14% of the population of Kenya receive remittance (2,612,000 people). 63% of recipients surveyed rate their economic situation as good or excellent

: World Bank survey (July-Sept) where 2,423 Kenyans were interviewed: http://www.slideshare.net/africaremittances/remittances-to-kenya-world-bank-survey-results

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The two largest categories for investment by recipients were: Small business (35%) Education (33%) Regions where the money sent to Kenya came from: North America 38% Europe 25% Other African Countries 25% Asia/Middle East 12% In Africa, Kenya was the 3rd largest recipient of remittance in 2010 after Nigeria ($10 billion) and Sudan ($3.2 billion) in Sub Saharan Africa. Sub Saharan Africa as a whole received $21 billion in 2010 from remittance.

1. KEY THEMES The impact of the Diaspora in the development of Africas economy and socio-political affairs has led the African Union to recognize the Diaspora as the 6th region of Africa. There are limited estimates of the number of 1st, 2nd and 3rd generation Kenyans who live abroad, but a viable indicator to measure their influence is that they directly contribute to at least 5.3% of Kenyas GDP. It is for this reason that the Kenyan government, civil society, public sector and industry needs to focus on engaging effectively with the Diaspora on the following key themes: i. Politics and Government Any section of the population that directly contributes over 5% of the countrys GDP must have a stake in shaping the political landscape of the nation. The lived experiences of the Diaspora and their interaction with different political systems around the world can only enrich the political discourse in Kenya. The Diaspora will naturally have a better educated, better committed and a more professional and dedicated pool of politically minded leaders who can play a key role in the countrys development. Economic power

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Over 14% (2,612,000 people) receive direct benefit from the economic power of the Diaspora. The formal and informal private sector in Kenya is heavily driven by the economic opportunities opened up by the impact of the Diasporas contribution. A significant section of the population is directly hauled above the poverty line from the economic contributions and impact of the Diaspora.

Education At 33%, Education as an investment is the 2nd largest benefactor from worldwide remittances to Kenya. Education is recognized as the single biggest factor that will improve livelihoods, create opportunities, and emancipate sections of the population (particularly women and girls) from the shackles of poverty and human rights inequalities. The contribution of the Diaspora in improving the countrys education infrastructure cannot be under-estimated and needs to be embraced and supported by government.

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Social capital The positive lived experiences and cultural enrichment that Kenyans in the Diaspora have gained need to be harnessed for the benefit of the countrys development. The collective friendships, networks, connections and opportunities created by engaging with people around the world should be nurtured and used for the benefit of Kenya in every way possible. The knowledge and life experiences of Kenyans abroad should be used more coherently and more effectively by our missions abroad to shape the positive engagement that Kenya has with host countries around the world.

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Entrepreneurial and professional expertise Kenyas economy as well as the development of a vibrant and relevant private sector must take advantage of the significant power of the entrepreneurial and professional expertise that the Diaspora provides. More than the economic capital provided by the Diaspora through remittance, Kenyans abroad possess a wealth of experience and know-how in every feasible discipline of business and enterprise that needs to be harnessed for the countrys development. The collective collateral of the Diasporas business contacts, networks, opportunities, successful ventures, influence and power developed over decades must be harnessed to leverage Kenyas position as an economic power in the region.

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2. PRACTICAL ENGAGEMENT WITH THE DIASPORA What steps need to be taken to engage with the Diaspora and shape the future of our country? a) Political Engagement 1. Kenyans abroad must be allowed to vote at general and Presidential elections like many other countries do. All aspects of the election process from voter registration to ballot counting can be effectively managed through Kenyan missions abroad. 2. The government must provide the investment and resources to allow their foreign missions to effectively implement remote voting for those in the Diaspora who wish to exercise their right to vote. 3. The government should appoint a Diaspora Minister or Diaspora Xzar at Ministerial level. The level of economic participation of the Diaspora (at least 5.3% of Kenyas GDP) warrants that the political involvement of the Diaspora be taken seriously. 4. The government should put in place an infrastructure to allow for political debate and engagement by the Diaspora. The outcomes of these debates should be represented in Parliament and in the Senate. 5. The government should recognize the significant experience and know-how in the Diaspora in the management of effective local government. This expertise can be harnessed in a structured way to give opportunities for those in the Diaspora to support the implementation of the new structures e.g. local counties and administrations mandated by the new constitution. b) Business And Enterprise 1. The government, private and public sectors need to be appraised of the significant expertise and know-how in industry and entrepreneurship available within the Diaspora. 2. The public sector must be open to the interests of Kenyans in the Diaspora who are keen to bid for public sector contracts with the view of creating local jobs and enhancing the local economy.

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3. The Kenyan Investment Authority needs to make it easier for Kenyans in the Diaspora to do business in Kenya and invest in Kenya. Bureaucracy and red tape need to be minimized while maintaining effective regulation. 4. The government needs to put in place investment friendly laws e.g. tax incentives that will encourage more capital investments and job creation by Kenyans in the Diaspora. 5. The government and the private sector must work together to make the internet more widely available and affordable to individuals and small businesses to allow for the exchange of business ideas, opportunities and creation of jobs between Kenyans around the world via the use of high speed internet. 3. Conclusion There can be no denial of the sheer impact the Diaspora has in all aspects of Kenyas development. Anchoring all this is the need to recognize the importance of enabling opportunities for Kenyans in the Diaspora to participate in the political process.

Agnes Gitau is London based consultant for East Africa Economic Chambers of Commerce and founder of the media for development Lobby London Africa Media Network

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