My my these comments get more and more interesting as time goes by.You have different groups here:
1.Those who agree with M whole heartedly
2.Those who agree with M but have some objections
3.Those who vehemently disagree and believe that there money is indeed helping
4.Those who vehemently disagree and say that they are out here because patriotism does not equal food
5.Those who disagree and say they are coming home someday
6.Those who disagree and say that since people back home are gnashing in business and employment why should they rush back to fail?
And the list goes on and on and on.
M I have decided to take a page from Victor’s book and take all these comments and compile them into a book with commentary from me.I will give you 5% out of courtesy.Send me your details….:D

I was tidying my bosse’s desk last week when I came across this letter at the bottom of her drawer. I suspect that she meant to send it so I have bought a virtual stamp and sent it off to you.

“To M

Your article about cake making and the bit about Kenyans abroad in particular has brought much anger and dismay in da house. I am writing on behalf of a fuming, hard working lady who claims that your reporters are all twisted and really should have had the decency to check their facts before going to press.

Yes Bwana Ishmael Amothi has a daughter abroad and her name is Waithira; she don’t go for none of that neo classic style of spelling like some folks. Yes indeed she went and studied and attained a degree in medieval dance rituals and Business administration. She also did a short correspondence course on plant psychology purely for visa xtension purposes.

The institute that she currently works for may sound like nasa on the phone but your dim reporter should know that it is called The Nursing and Residential Care Service Association, NARCSA and they have many homes in all towns and cities.

I expect an apology.”

Please do refer to this to answer your question:

http://www.nationmedia.com/dailynation/nmgcontententry.asp?category_id=65&newsid=67139

As Kenyans abroad remit Sh50bn, shilling gains new ground

Story by GEOFFREY IRUNGU
Publication Date: 02/14/2006
Foreign currency sent home by Kenyans living abroad has been helping to shore up the Shilling.

According to information made available by the Central Bank of Kenya, up to Sh50 billion ($700 million) is remitted to Kenya annually.

The money has not only helped lift the local currency, but has also spurred activity in the property market. Buying of houses and construction of new buildings have received a boost from monies remitted to Kenya in recent times.

Of course, the building and construction boom has also been driven by lower mortgage interest rates, and higher budget allocations to road construction and rehabilitation in the 2005/06 financial year.

Not surprisingly, among the other sectors that have benefited from this is the cement industry, with consumption rising by 7.9 per cent in the first ten months of 2005 to nearly 1.2 million tonnes.

Better economic environment

With five per cent of the GDP being sent back by Kenyans in the diaspora, it is clear they have made a sizeable contribution to economic growth in recent years. The Kenya Club, an organisation of Kenyan professionals and investors residing in Britain, said last September that there were well over two million Kenyans abroad, including 130,000 in the UK itself. The veracity of the figures notwithstanding, it is true that the economic circumstances of those who opt to reside abroad is sometimes better than that of those they live behind.

Late last year, the Club said: “It is a fact that we are a vital source of revenue to our country, through the remittance of foreign currency to our families and towards development projects.”

Kenya Club even estimated the annual remittances to be actually higher than what is given by the Central Bank of Kenya. Its annual bank survey for Kenyans abroad showed that they send back not less $1 billion (Sh71 billion) annually, while those in the UK alone remit Sh50 billion annually. The organisation said that when informal remittance mechanisms are taken into account the amount more than doubles official flows.

Reliable infrastructure

The money sent home by Kenyans abroad could be even more, were it not for the fact that expensive transfer charges hinder the sending of more money home.

The Government set up an informal facilitation committee to help them send money at affordable rates. However, when they Kenya Club made enquiries on the progress of its work last year, the Central Bank revealed that there was little movement, despite several meetings among the organisations concerned. Some Kenyans abroad even suggest that a possible solution to remitting money home would be the establishment of a Kenyan Bank in the UK, or the setting up of a reliable information and communication technology infrastructure.

Kenyans may be sending dollars back home and helping keep the local currency strong, but local exporters have to live with a strong shilling and its negative consequences. Horticultural exporters have especially been vocal against the Shilling’s appreciation, unlike importers who are content to bask in the luck that recent developments have brought to their business.

At a workshop on financing the tourism sector last week, the chief executive of the Nairobi Stock Exchange, Chris Mwebesa, said Kenyans living abroad invested at least Sh10 billion in 2004 in the stock market.

He said that the money even had an impact on the local currency. The Central Bank, however, says that apart from the estimates, the data given about remittances are not reliable. The Bank is also reluctant to admit that the remittances have had an impact on the Shilling.

It notes that organised repatriations of funds boost domestic foreign exchange holdings and facilitate transmission of funds by Kenyans abroad at more competitive pricing.

Indeed, foreign exchange reserves have been growing. Those held by the banking system rose to $2.446 billion at the end of September 2005, from $1.906 billion at the end of September 2004. Foreign currency deposits held locally by residents increased to $1.14 billion at the end of September 2005, from $881 million at the end of September 2004.

Despite the contribution to growth that Kenyans living and working abroad make to the country, facilities for sending money home are limited. Indeed, it seems most of the money is sent through Western Union, but there seems to be a variety of other informal ways that bypass the formal banking system.

Foreign accounts

When Kenya Club sought to establish the best banking facilities available for Kenyans living in the diaspora, it found out that most would prefer a bank account to manage financial obligations in Kenya, rather than the ad-hoc arrangements available to them.

The survey also noted that banks are not catering for the needs of the majority of Kenyans abroad, pointing out that most of the banks contacted lacked the infrastructure to manage foreign-owned bank accounts from abroad, did not offer internet banking services, and expected customers to operate bank accounts by post, or even face to face. Some banks have adopted some form of Internet banking since the survey, but the general situation remains unchanged.

The Kenya Club also found out that bank charges varied greatly, with no standard rates or charges. Some banks charged five to 10 times as much as the cheaper ones for the same service. Most charge for all manners of services, including monthly service charges, which are not the norm for Kenyans in the diaspora.

However, the survey also highlighted some banks that had by then enabled Kenyans to use their services to send money home, including Commercial Bank of Africa and National Industrial Credit (NIC) Bank. Others are now even offering mortgage finance for Kenyans abroad.

“Banks still have a long way to go to redress the balance and ensure that foreign currency remittances are channelled in the most effective way, we hope the Kenya Club Banking survey will create a step-change,” said Sam Manjau, Kenya Club’s finance director, at the time of the survey.

Pavlov must be dead, but maybe his ghost still rings a bell.

Wow, was that passionate or what? Very well written piece.

What the blog writer is saying is “STOP THE DELUSION!!”

As is obvious, nobody can force the diaspora Kenyans to come back home and and build the country, but they must realize what they are doing is irrelevant in the bigger picture. Besides how do they think the high rises, the road networks and superior technological advances in US and Europe were made. By research, dedication, investment etc NOT by somebody wiring money every month!

Thinker is right, you cannot have your cake and eat it!! This problem would be solved by requiring all who proceed to emigrate for flimsy reasons to leave their national identity and citizenship at the door. Proceed to live “feed yourself” and “take care of immediate needs”. Don’t let the door hit you on your way out.

This is not an issue of patriotism, it is an issue of common sense! An analogy: if you spend all your time cleaning other people’s houses, using extraordinary “next generation” cleaning agents, then neglecting your own house, then complain that nothing is getting done in your own house!! Who do you think will do it?? Jeez!! If it is a problem of technology and resources, complaining about using “outdated” cleanign agents will not help, since you have been exposed to these fancy Western gadgets and technology, apply the same in your own house.

Now extrapolate this situation to whatever sector is of interest to you, the economy, technology, academia etc. The Kenyans who have studied abroad are in a position of great advantage in that they have been exposed first hand to the mechanisms in the Western commerce and industry and if motivated enough can reproduce this knowledge and creativity in their home turf.

The comment(s) equating this mass emigration of Kenyans (for flimsy reasons) to foreign (usually Western countries) to rural-urban migration is incorrect. It is apples and oranges. The relatives one has in Siaya, Kerugoya or Mtwapa are all citizens of Kenya, any economic or structural growth benefits them, albeit not immediately. The gains and advancements made in research, technology etc done in foreign countries using their resources are the property of those sovereign countries.

People just need to stop the delusion. The masses will continue to go abroad, some will achieve great heights in their careers, others will be doing low level jobs for decades on end. Others still will come back home, secure excellent jobs in MNC, parastatals and private companies, and yet others will come back home, find their skills are not applicable and suffer massive frustration. All these are possible outcomes. Nothing in life is a guarantee. However, the delusion must stop. Wiring funds from abroad at regular intervals is NOT building the country.

Final thought: There is a vicious cycle set in place in Kenya. You have all seen/heard/met the token expatriate high level manager in many companies. Some are qualified, others grossly underqualified. I do believe, with the exception of some multinational companies and any underhanded politics aside, there was at some point a shortage of native Kenyans with the requisite skills/experience/education in some sectors. However, that was then, this is now, with graduates from both local schools and those abroad having advanced degrees in fields like Engineering and IT, there is no excuse not to hire local. BUT with all the good qualified folks running away, what option do they have but…..drum roll please…bring in yet another expat.

What happens next, pockets of students and grads in America, Europe and Asia whine on end about their employment prospects back in Kenya. How only foreigners get the top level juicy jobs. It is a vicious cycle people. Only we can stop it.

So either come back home, roll up your sleeves and get to work or stay wherever you are, wire back your weekly/monthly/annual remittance but do not expect a collective show of gratitude and appreciation from Kenya and Kenyans as a whole.

It is kinda late to be reading and commenting on this article but it is absolutely brilliant. Can I publish it?

I am in the States but I think anyone who sends money back home to support people there does nothing for the economy. As a matter of fact, it is an insult for the government to be trumpeting the KShs 65 Billion being sent from the Diaspora. You mean to tell me you have done such a bad job in building the economy that remittances are the leading source of foreign exchange in the country?

I think we need to have programs where actual solutions such as helping families gain real wealth through entrepreneurship or investments or the like. This will build the economy while providing families with real sources of income. To keep sending money is to keep training people to rely on you for ever. The only way to solve our problems and progress is solve the root cause of sending money – poverty. That by the way is solved by giving the poor a chance to make their OWN money, not yours.