EAC Common Market Scorecard SECTION ONE: Collective Scoring Diaspora Inflows: Tapping the Potential ICPAK Financial Services & Exhibition Conference 2013 0
Outline • Definitions • Trends & Sources of Inflows • Benefits & Effects • Tapping the Potential • Conclusion 1
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. 2
Chart 1 3
• 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. 4
Sources of Inflows Source: Central Bank of Kenya (2013) 5
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 6
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 7
Conclusion • Scope for raising inflows exists • Inflows supplement and NOT alternative to local saving and investment 8
• Thank you • owinok@ieakenya.or.ke • www.ieakenya.or.ke 9
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