"Kenya is open, safe for business" - PS Abubakar urges Kenyans in Diaspora to invest back home

The government has established a task force that will come up with an investment promotion strategy meant to attract, facilitate and enable diaspora investment.

State Department for Investment Promotion PS Abubakar Hassan says that the task force will include key stakeholders from the National Treasury, State Department for Diaspora Affairs and Kenyans in diaspora representative.

Speaking at the Jambo List Diaspora Expo held in New Jersey, U.S, PS Abubakar reiterated the need for diaspora investments to be diversified to financial assets and not just the active assets like land and houses.

PS Abubakar Hassan engaging with Kenyan Diaspora in New Jersey, United Staes, on Kenya Kwanza Government plans to reduce the cost of remittances and enhance the safety of their investments. “Kenya is open, ready, and safe for business… Our focus is to channel and funnel at least 50% of Kenyan Diaspora remittances to Investments,” the PS says.

The Principal Secretary (PS) urged Kenyans in diaspora — and Kenyans at large — to look into passive investments like regulated financial assets such as the treasury bonds which are risk free and will save them the time needed to look into active investments that generate income.

‘’The diaspora market is a 600 billion dollar market in the world and the remittance that came into Africa as of 2022 statistics is 100 billion dollars. Out of that, only 4 billion dollars came to Kenya. Our goal as per the instructions and directive of the president is to double the 4 billion dollars to 8 billion dollars and as you remit, 50% of the remittance will go to investments,” PS Ababukar said.

The PS has touted the move as a game changer when it comes to bolstering investment confidence by increasing investors trust in the investment space. This move will enable investors to work with the government directly when investing in Treasury bonds.

The Central Bank of Kenya (CBK) already has a system — dubbed DhowCSD — and a mobile application put in place to allow individuals and corporate bodies to invest in Treasury bills and bonds without going through an intermediary.

Complementary deal for AGOA

During his four-day trip to the U.S, President William Ruto pushed for the extension of the African Growth and Opportunity Act (AGOA) which expires in 2025 – though a new bill has been introduced for its renewal to 2041. With Kenya been one of Africa’s largest beneficiaries of AGOA trade, AGOA agreement will allow Kenyans to access the US market quota free and duty free.

Data shows that more than 70 per cent of Kenyan exports to the U.S fall under the AGOA terms.

‘’Taxes we must pay! Kulipa ushuru ni kujitegemea!’’ said the PS as he defended the government on the issue of taxes. “We have a commitment with Kenyan people and this commitment needs to be funded.”

On the issue of privatisation of state-owned entities, PS Abubakar said that it was an alternative way for the government to get funds, although the the plan was halted as it is in courts.