Remittances from abroad and Brain drain
By Kamau Wanguhu
A World Bank report in estimates that Kenya in 2010 is expected to earn $1.7 Billion dollars from remittances representing five per cent of Kenya’s GDP. It dwarfs Kenya’s famed tourism industry which brings in $ 1.2 Billion and even its horticulture and coffee/tea industries. As well as net FDI inflows which were a meagre US$0.1 bn
These numbers are only estimates as they only represent formal methods of remittances and with a large number of informal ways of sending money the actual figure could be actually greater. With current estimation of approximately ½ million Kenyans in foreign lands, and remittances now being the lead foreign exchange earner the Kenyan government would have to devise ways of reengaging with its citizens out in the diaspora. In addition the popular kenyan mobile money transfer platform M-Pesa going international will eventually elad to increased transfers.
As opposed to foreign aid laden with conditions and accessed through bureaucratic channels, remittances have an immediate effect in the standard of living of the recipient and the immediate family.
But before Kenya starts to view immigration as one of its major exports it has to be considered that sectors losing personnel include the health industry which has a direct impact on the health of the nation. Lately workers experience abroad especially mistreatment in the middle east have placed an emphasis on the need for regulation. The Kenyan government may seek to look at the Philippine regulations on relations with diaspora including a right to vote.
