Diaspora Inflows: Tapping the Potential ICPAK Financial Services - - PowerPoint PPT Presentation

Diaspora Inflows: Tapping the Potential

ICPAK Financial Services & Exhibition Conference 2013

EAC Common Market Scorecard SECTION ONE: Collective Scoring

1

Outline

• Definitions
• Trends & Sources of Inflows
• Benefits & Effects
• Tapping the Potential
• Conclusion

2

Definition

• …includes the financial transfers in foreign

currency sent in by Kenyans resident or working outside the country.

• Remittances are the result of Kenyan

professionals providing labour outside of Kenya.

3

Chart 1

4

• Chart 1: Illustrates the trend in nominal remittances to Kenya has been

upwards.

• Remittances are a major source of foreign exchange and have helped

to cover for shortfalls in commodity exports and replaced important commodities such as coffee.

• Remittances Inflows also show a large degree of stability and less

vulnerable to economic shocks than other exports.

5

Sources of Inflows

Source: Central Bank of Kenya (2013)

6

Benefits & Effects

• Source of foreign exchange
• Net addition to h/hold income
• Creates demand for financial services
• Financial inclusion
• Social expenditure
• Opportunity for labour exports

7

Tapping Potential

• Maintain liberal immigration policy
• Efficient & safe financial services
• Protection of migrant labour
• Taxation of immigrant’s income
• Competition in Money transfers
• Diaspora Bonds-innovation

8

Conclusion

• Scope for raising inflows exists
• Inflows supplement and NOT alternative

to local saving and investment

9

• Thank you
• owinok@ieakenya.or.ke
• www.ieakenya.or.ke