Kenyans increase remittances from diaspora

Export earnings

Official figures show that export earnings from the horticulture sector dropped to Sh19.5 billion in the six months to June, compared to Sh26.2 billion in the same period a year earlier.

Players in the sector attributed the poor show to reduced demand from the European markets, which saw exports drop from 84,938 tonnes in the first half of 2009 to 74,398 tonnes in the same period this year.

Exports of horticultural products are Kenya’s biggest foreign exchange earner, raking in Sh71.6 billion shillings worth of flower, fruit and vegetable exports last year, down from 73.7 billion the previous year.

Players in the stock and property market say that the share of their business controlled by Kenyans working abroad has increased.

“Since the recovery of the stock market, we have seen tremendous growth of orders from Kenyans in the diaspora, which shows a strong interest in the economy,” says Mr Michael Gichohi, the managing director of Suntra Investment Bank.

Though the property market has been a red-hot asset class in terms of capital gains, the low demand from Kenyans living abroad due the tough job market in the West last year and locals balking at paying for overpriced apartments have kept home prices stagnant.