Kenya to establish Diaspora Welfare Fund for emergency relief and repatriation support

Kenya is moving toward setting up a formal support system for citizens living abroad, with plans underway to create a legally backed diaspora welfare fund aimed at helping Kenyans facing emergencies, repatriation challenges, and other social welfare needs in foreign countries.

Prime Cabinet Secretary Musalia Mudavadi said the government is already working with Parliament to develop a clear legal framework that will guide how public resources are used to support Kenyans in the diaspora, whose numbers and needs continue to grow.

Speaking during a meeting with the Kenyan community at the Kenyan Embassy in Seoul, South Korea, Mudavadi said the proposed structure is meant to ensure that assistance is organised, predictable, and properly managed through official channels.

“As government through the Ministry of Foreign and Diaspora Affairs, we are working with Parliament to establish a framework that will legally formalize the allocation of resources from the taxpayers to cater for some of these challenges since the diaspora is growing in numbers and their needs are also increasing,” he said.

Mudavadi, who also serves as Cabinet Secretary for Foreign and Diaspora Affairs, stressed that the proposal will not go through without strict checks, noting that accountability will be a key part of the discussions in Parliament before any approval is made.

He added that questions will inevitably arise on how taxpayer money should be used, especially in situations involving individuals who may have placed themselves in difficult circumstances while abroad.

“The government and particularly Parliament will have to scrutinize this proposal carefully since questions will emerge of how much can you take from the taxpayers to cater for a section of the diaspora who get themselves into trouble knowingly,” he said.

He further raised ethical concerns around whether support should extend to Kenyans involved in unlawful activities in foreign countries, saying this will require clear legal and moral boundaries.

“The moral question will then arise on how Kenyans who get themselves in illegal activities like drug trafficking, human trafficking, engaging with unscrupulous recruitment agencies among other vices should be covered by the fund,” Mudavadi warned.

Alongside the welfare proposal, the government is also advancing plans for a Diaspora Bond framework that would allow Kenyans living abroad to invest directly in national development projects in a structured and legally protected manner.

Mudavadi said the initiative is intended to improve transparency and ensure diaspora investors are able to track how their money is used and what returns they may receive.

“We are looking at having a legal backing under the national infrastructure fund or a sovereign bond that will help legally secure and track investment progress for the Kenyans in diaspora, for them to understand where their money is being invested and benefit from the returns,” he said.

He also clarified that diaspora remittances are not handled by government accounts, but are instead processed through commercial banking systems, easing concerns over how the funds are managed.

Official figures show that diaspora remittances have now crossed Sh1 trillion, contributing more than 4.6 per cent of Kenya’s gross domestic product and surpassing traditional foreign exchange earners such as tea, coffee, and tourism.

Mudavadi further noted that the government is working on broader reforms, including stronger labour agreements with partner countries, tougher action against fraudulent recruitment agencies, and possible introduction of electronic voting systems to allow Kenyans abroad to participate in the 2027 General Election.