The government has announced new measures aimed at making it cheaper and easier for Kenyans living abroad to send money home, a move expected to boost remittance inflows and support investment.
President William Ruto, while speaking in Qatar on Tuesday evening, revealed that he has directed the Central Bank of Kenya (CBK) to work with the International Association of Money Transfer Networks (IAMTN) to develop a more affordable and efficient framework for cross-border remittances.
“I have instructed CBK to work with the International Association of Money Transfer Networks (IAMTN) so that we can find a much more cost-effective mechanism of sending money back home,” Ruto said.
He noted that the government’s goal is to lower the transaction costs that currently burden Kenyans in the Middle East, who pay between 5 and 7 per cent in fees when sending money home.
“It is our intention to support you. We know that it costs between 5 to 7 per cent of the money you send. We want to make it cheaper and faster,” he added.
The planned collaboration with IAMTN is expected to create a regulatory framework that will allow licensed money transfer companies and fintech platforms to integrate directly with Kenyan banks and mobile money systems, cutting out costly intermediaries.
The initiative could mirror global models where diaspora remittances are processed through integrated payment systems, allowing senders to use digital wallets or online platforms linked to Kenyan payment services such as mobile money transactions.
According to the President, Kenyans in Qatar alone remit about Ksh5 billion annually, meaning millions are lost to transfer fees.
Diaspora Investment
In addition, President Ruto revealed that the government is finalising the creation of a Diaspora Bond, which will allow Kenyans abroad to invest directly in local infrastructure and development projects while earning returns on their contributions.
“We are in the final stages of a diaspora bond to help Kenyans in the diaspora support investments back home while earning income,” he said, noting that the proposal is now awaiting final Cabinet approval.
Ruto also reiterated that Kenya will continue to prioritise the safety and welfare of its citizens working abroad, emphasising that only countries with formal bilateral agreements and established diplomatic missions will be cleared to receive Kenyan workers.
“The government will not send workers to countries where we do not have bilateral arrangements or an embassy. We must ensure our citizens are well protected wherever they go,” he stated.
