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The population of Kenyans living in the diaspora is estimated to be three million. This group is said to include well-educated people, living primarily in the US, Canada, and Europe. However, Kenyans living abroad are cautious when it comes to investing their hard-earned money at home.
Diaspora Kenyans planning to invest in their home countries have heard horror stories and misgivings from others who have been scammed by agents or their own families. If you live abroad, you must be very careful when investing your money.
One group created to help investors in the diaspora is Manyatta Capital. Started by a Kenyan citizen who lived and worked in the US for more than 10 years, this company helps Kenyans living in the diaspora buy land through syndication. The company groups together several foreign investors who buy shares in a project. This project is then subdivided and the buyers receive individual property titles.
Investors can choose to build apartments, build their houses, or lease that land; the choice is up to them. It is recommended to refrain from dealing with relatives as your money could go down the drain due to many factors. For example, sending money to a family member who knows nothing about investing is guaranteed to end badly. Whenever possible, hire an attorney from a distinguished firm to handle your investment process for you. Better to spend more on an attorney who will make sure your investment is legitimate, negotiates for you, and handles the property process for you, rather than sending thousands of dollars to a relative who could end up getting scammed.
When looking for a real estate company to work for, choose wisely. This is because some are bogus, while others tend to inflate prices for big profits. Look for a company that allows you to keep your money in custody. In this way, you eliminate the risk of fraud. Keeping money in escrow means that a third party, primarily your attorney, will retain your money and only hand it over to the real estate firm once they have personally inspected that land exists and title deeds have been processed.
How do you determine if the prices that a real estate agency gives you are legitimate?
When it comes to determining costs, markets in Kenya and other foreign countries tend to differ greatly. In the US and other countries, it is fairly easy to understand how the price of a property came to be because a real estate commissioner keeps records of all sales. However, this is not the case in Kenya and, as a result, most brokers inflate prices. Many people living abroad have lost their savings thanks to these types of plans.
When investing in real estate, look for a company that consults with property surveyors to identify properties that have great potential. Find a company that can help you identify a property, validate the property, and negotiate prices on your behalf, while allowing your attorney to be part of the process.
How can our Kenyan government help?
“Many times, Kenyans living abroad have succumbed to fraud. Our government must offer a guarantee to Kenyans in the diaspora so that they know that if something goes wrong with their investments, they can protect themselves against staggering losses,” Robinson said. Githae, Kenyan ambassador to Washington. “Our government should reimburse investors who have been scammed after using a company that is registered to buy property,” he added.
This model has worked a lot in other countries and when implemented it can help those brothers and sisters who wish to invest their wealth in their homeland.
The Kenyan government is working hard to raise awareness of investment opportunities among Kenyans abroad. Some Kenyans have been away from home for so many years that they don’t know the best way to invest there. They end up trusting the international media, which unfortunately, does not paint Kenya with a positive image. Our government is working hard to educate Kenyans living abroad about investment opportunities through seminars and workshops hosted by embassies in foreign countries. If you find out there is one near you, be sure to attend.
Last year, Kenyans living in the diaspora remitted approximately 89.1 billion Kenyan shillings to finance investments in their home countries. Provided with key information and protection, Kenyans living in the diaspora can send more money to our country and, in turn, strengthen our economy.
