How to Invest in Kenya from Abroad
Kenyans living in the diaspora get a hard time when they want to invest money back in Kenya. Most of them send money to friends and relatives to manage their investments. However, the money is never used for the intended investment and most of it is lost. It is for this reason we wish to provide Kenyans living abroad with profitable investments in Kenya.
There are over three million Kenyans living in Europe and North America. It is estimated that Kenyans living abroad remit about $3 billion to Kenya every year, that represents a significant percentage of the foreign exchange.
Diaspora Investment Options in Kenya
The following are investment options for Kenyans living in the diaspora.
1. African Diaspora Asset Managers (ADAM)
African Diaspora Asset Managers (ADAM) is a Kenyan investment firm operating through a mobile app. It is licensed by the Capital Markets Authority (CMA) and is targeting Kenyans living in the diaspora. Its services can be accessed through a mobile application. It offers the following investment options:
- ADAM Equities Funds
- ADAM Property Fund
- ADAM Business Growth fund
The firm offers financial products and services like asset management, investment management, wealth management and unit trusts to its clients. The firm is also offers collective investment schemes that give access to diversified asset portfolios. It also seeks to provide debt and equity capital for businesses in Kenya and Africa at large.
One can check their investment balance and sell units through the app using Visa, bank account, or Mpesa. One can invest as low as five dollars and payments can be channeled through Mpesa.
2. Invest in a SACCO
Recently, there has been a rise in the number of SACCOs in the diaspora. It is because many Kenyans wish to retire in Kenya. As such, many are looking for diaspora investment options in Kenya.
Kenya North America Diaspora Sacco (K-NADS) is a Sacco of a kind. The Sacco started in 2016 and is strictly for Kenyan women living in North America. Diaspora returnees can also invest in the Sacco. Currently, the Sacco has over 1,000 members and has an office in Nairobi. Another Sacco for Kenyans living in the US is the Kenya USA Diaspora Sacco. The Sacco was registered in 2012 and its customers have grown considerably.
Through such Saccos, Kenyans living abroad can borrow money locally. It is challenging to borrow money from financial institutions abroad due to the stringent measures and requirements they must meet.
So far, there are more than 10 Saccos for Kenyans living in the USA, Middle East and Europe. They can use these Saccos to invest, save and borrow.
Read also: Best investment SACCOs in Kenya.
3. Real Estate
Real estate is an excellent diaspora investment option for Kenyans working abroad. If you live abroad, you can invest in Kenya through land and buildings. There are many companies that can help you invest in real estate while abroad. Make sure that the firm you plan to use is reliable and genuine.
Foreigners can also invest in real estate here in Kenya. Some of the diaspora investment properties include prime land, commercial, residential and industrial properties. Some real estate companies have partnered with Diaspora Saccos to tap into remittances in Kenya. Real estate companies have partnered with Saccos to help members invest in real estate. Some of these real estate companies include:
- Fadhili Homes in Malaa that partners with Kenya USA Diaspora Sacco. Most of its members are from the US, Australia, UK and Canada.
- Heri Homes is also targeting Kenyans in the diaspora.
Read also: Real estate properties to invest in Kenya.
4. Invest in Government Securities
If you are a Kenya living abroad, you can invest in Government securities. There are two types of Government securities you can invest in; Treasury Bonds and Treasury Bills. Treasury Bills are short-term and have a maturity period of 91 days, 182 days and 364 days.
On the other hand, treasury bonds are long-term investments and have a maturity period of between 1 year and 30 years. To invest in government securities, you must have a bank account with a commercial bank. You must also open a CDS account. You can open a CDS account with the Central Bank of Kenya free of charge or through your local commercial bank at a fee.
If you are a foreigner and a non-resident and you wish to invest in Kenyan Government securities, you must be a nominee of a commercial bank, stockbroker, or investment bank.
5. Kenya Diaspora Alliance
Kenya Diaspora Alliance is an organization formed by Kenyans living abroad. It has over 250,000 members and it helps them send money back home. It has partnered with commercial banks and money transfer services to ease remittance of money into the country from abroad. It has helped many Kenyans living abroad send money back home and invest in Kenya.
Read also: Best investment banks in Kenya.
Summary of Investment Options in Kenya from Abroad
There are many Kenyans living abroad who remit money back to Kenya. Most of them wish to retire in Kenya. As such, many are looking for diaspora investment options in Kenya. The above are some investment options that Kenyans living and working abroad should consider.