The Kenyan diaspora has an estimated population of three million. This group is said to consist of well-educated individuals, who mainly live in the United States, Canada, and Europe. However, Kenyans living abroad are cautious when it comes to investing their hard-earned money back home.
Kenyans in the diaspora planning to invest back home have heard stories of horror and fear from other people who have been deceived by clients or their families. If you live abroad, you have to be very careful when it comes to investing your money.
One of the groups created to help diaspora investors is Manyatta Capital. Started by a Kenyan citizen who has lived and worked in the United States for over 10 years, this company helps Kenyans living in the diaspora purchase land through co-financing. The company brings together a number of foreign investors who buy shares in one project. This project is then divided and individual title deeds are issued to the buyers.
Investors can then choose to build apartments, build their homes, or rent that land – the choice is up to them. It is advised to refrain from dealing with relatives because your money may run out due to many factors. For example, sending money to a relative who knows nothing about investing guarantees a bad ending. Whenever possible, hire an attorney from a premium firm to handle the investment process for you. It is better to spend more on an attorney who will ensure that your investment is legitimate, negotiate on your behalf, and handle the property process for you, rather than sending thousands of dollars to a relative who may end up being scammed.
When looking for a real estate company to work with, choose wisely. This is because some are fake, while others tend to inflate prices in order to make huge profits. Find a company that allows you to keep your money in an escrow account. In this way, you eliminate the risk of fraud. Keeping the money in an escrow account means that a third party – mostly your attorney – will hold your money and only release it to the real estate company once they personally survey that plot of land and process the title deeds.
How do you determine if the prices given to you from real estate are legitimate?
When it comes to setting costs, the markets in Kenya and other foreign countries tend to differ significantly. In the United States and other countries, it is very easy to understand how the price of a property appears because the real estate commissioner keeps records of all sales. However, this is not the case in Kenya and as a result, most dealerships inflate prices. Many people living abroad have lost their savings from these types of schemes.
When investing in real estate, look for a company that consults with a real estate surveyor to identify properties with great potential. Find a company that will help you locate property, verify title, and negotiate prices on your behalf, while allowing your attorney to be part of the process.
How can our Kenyan government help?
“Too often, Kenyans living abroad have succumbed to fraud. Our government needs to provide assurance to Kenyans in the diaspora so that they know that if something goes wrong with their investments, they can be protected from massive losses,” said Mr. Robinson. Githai, Kenya’s ambassador to Washington. “Our government should compensate investors who were deceived after using a registered company to buy real estate,” he continued.
This model has been very successful in other countries, and when implemented, it can help brothers and sisters who want to reinvest their wealth in their motherland.
The Kenyan government is working hard to create awareness of investment opportunities among Kenyans abroad. Some Kenyans have been away from their homelands for so many years that they don’t know the best way to invest there. They end up relying on the international media, which unfortunately does not paint a positive picture of Kenya. Our government is working hard to educate Kenyans living abroad about investment opportunities through seminars and workshops organized by embassies in foreign countries. If you hear that there is someone near you, be sure to attend.
Last year, Kenyans living in the diaspora transferred about 89.1 billion Kenyan shillings to fund investments back home. If Kenyans living in the diaspora are provided with basic information and protection, they can transfer more money to our country, thus boosting our economy.