Toronto, Canada – January 9, 2026 – Kenya’s diaspora continues to demonstrate extraordinary economic power. Official remittances have reached KSh 1 trillion by November 2025 and are projected to have surpassed KSh 1.1 trillion by early 2026. This positions diaspora remittances as Kenya’s largest external financial inflow. They far exceed foreign direct investment, tourism earnings, and development assistance.
In 2025, the Government announced plans to introduce Diaspora Bonds. These bonds target up to KSh 500 billion to finance major infrastructure projects like a new terminal at Jomo Kenyatta International Airport (JKIA). Additionally, they aim to reduce reliance on costly external borrowing. This signals a strategic shift toward leveraging diaspora capital for national development. However, economists caution that the success of these bonds will depend fundamentally on trust, transparency, and diaspora confidence.
This makes the newly launched Kenya Diaspora Investment Strategy (2025–2030), unveiled a month ago, particularly significant. The Strategy is a commendable initiative by the State Department for Diaspora Affairs (SDDA) aimed at shifting remittances from household consumption toward structured, productive investment.
However, for both the Strategy and the proposed Diaspora Bonds to succeed, implementation must evolve. It must move from a centrally designed model to a diaspora-driven framework. Most Kenyans abroad were not meaningfully involved in shaping the Strategy. Despite being its primary stakeholders and financiers, their involvement was limited. This underscores the urgent need for a Diaspora Council composed of recognized diaspora community leaders and key stakeholders.
The magnitude of diaspora remittances highlights why their full inclusion is essential. With inflows exceeding KSh 1.1 trillion, the diaspora contributes more than Kenya’s top exports combined — tea, horticulture, tourism, and coffee. These together generate approximately KSh 700 billion annually. Remittances also rival major national budget lines. These include education (about KSh 650 billion) and infrastructure (roughly KSh 450 billion). Official Development Assistance (ODA) to Kenya in 2024 was estimated at KSh 350 billion. This means diaspora remittances were three times larger than all development aid combined.
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Put differently, diaspora remittances could fund all 47 county governments more than three times over. Nairobi County, with an annual allocation of KSh 20–22 billion, could be funded nearly 50 times by diaspora inflows. Kiambu County, with an allocation of KSh 15–16 billion, could be funded close to 70 times. These figures show that diaspora resources are not marginal — they are transformative.
The Diaspora Investment Strategy itself identifies trust deficits as the biggest barrier to diaspora investment. Trust cannot be built through conferences, expos, or online portals alone. It requires shared decision-making, transparency, and genuine inclusion. A framework developed without broad diaspora participation risks being perceived as consultative rather than collaborative. For a community that has long felt disenfranchised and invisible, trust must be anchored in representation.
Many of the barriers identified — taxation, regulation, investment protection, remittance costs, land fraud, and legal enforcement — are fundamentally legislative. This is why diaspora representation in both Houses of Parliament is essential. Such representation would embed diaspora policy in law and provide oversight over diaspora-related institutions. It would ensure that instruments like Diaspora Bonds are co-designed with diaspora input. Moreover, it would transform trust from a sentiment into an institutional guarantee. Above all, it would end the long-standing sense of diaspora disenfranchisement.
If Kenya adopts a diaspora-driven model grounded in trust and representation, remittances could double within five years and triple within ten years. This unlocked amount could reach as much as KSh 3 trillion annually. It would significantly reduce external borrowing and strengthen the shilling. Additionally, it would finance national infrastructure, support county development, and further stabilize Kenya’s fiscal position.
The Diaspora Investment Strategy is a strong beginning. But its success — and that of the proposed Diaspora Bonds — will depend on whether Kenya takes the next step. This step involves moving from central design to diaspora leadership, from consultation to representation, and from engagement to enfranchisement.
The diaspora has demonstrated extraordinary commitment to Kenya. It is now time for Kenya to match that commitment. This involves giving the diaspora a formal seat at the table where national decisions are made. Only then will the Strategy achieve its full potential and unlock the unprecedented economic power of Kenyans abroad.
Written by:
Ephraim Mwaura
Chairman, Diaspora Bicameral Parliamentary Framework (DBPF) Caucus
President & Executive Director, Kenyan Canadian Association
