Economy

Kenyans abroad set to get incentives for investment

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The Central Bank of Kenya head office. FILE PHOTO | NMG

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Summary

  • Kenyans living in the diaspora will get special incentives, including wealth protection to encourage them invest back home if Parliament enacts a new Bill into law.
  • The Kenya Citizenship and Immigration (Amendment) Bill, 2020, requires Foreign Affairs Cabinet secretary to craft a voluntary savings scheme for Kenyans living abroad.
  • If passed into law, the Bill, currently before the Senate will open the window for Kenyans in the diaspora to form associations and voluntarily contribute to a saving scheme.

Kenyans living in the diaspora will get special incentives, including wealth protection to encourage them invest back home if Parliament enacts a new Bill into law.

The Kenya Citizenship and Immigration (Amendment) Bill, 2020, requires Foreign Affairs Cabinet secretary to craft a voluntary savings scheme for Kenyans living abroad.

If passed into law, the Bill, currently before the Senate will open the window for Kenyans in the diaspora to form associations and voluntarily contribute to a saving scheme.

“The Cabinet Secretary may liaise with financial institutions in Kenya to negotiate favourable terms on the investments of any contributions that may be made,” the Bill, sponsored by Murang’a Senator Irungu Kangata states.

The Bill seeks to amend the Kenya Citizenship and Immigration Act to require Foreign Affairs Cabinet Secretary, in consultation with the relevant Kenya mission to promote the establishment of voluntary savings scheme for Kenyans living abroad.

“The Cabinet Secretary, may in consultations with the Cabinet Secretary for Treasury and the governor of Central Bank, develop policies and programmes offering incentives to Kenyans living abroad to invest in Kenya,” the Bill states.

The two Cabinet Secretaries (CS) and the Central Bank governor will be required to establish a database setting out information on programmes and projects in Kenya for investment by Kenyans living abroad.

The Bill requires the CS’s and the governor to put in place measures for the prevention of fraudulent practices that hinder investment, in Kenya, by Kenyans living abroad.