Kenyans living and working abroad constitute a fundamental pillar of the nation’s economic framework. In 2024, diaspora inflows topped $4.95 billion (approximately Sh752.4 billion), surpassing foreign exchange earnings from tourism, tea, and horticulture.
According to the CBK, by the first half of 2025, remittances were above $2.5 million, which shows a great improvement. While the volume of these funds continues to rise, a large portion ends up in the same destination- real estate.
Buying land or putting up rental units is deeply ingrained in many diaspora investors' plans, often driven by cultural expectations, family pressure, or the security of owning something tangible back home.
However, an overreliance on property as an investment is increasingly proving restrictive—particularly during market downturns, periods of limited liquidity, or protracted legal disputes over land. Consequently, capital remains tied up, financial flexibility is diminished, and investment objectives are delayed.
Kenya’s financial sector has evolved in recent years, offering more regulated and professionally managed investment options.
Money Market Funds (MMFs), in particular, have grown in popularity, especially among investors who want their savings to grow without being exposed to excessive risk.
MMFs pool capital from investors and deploy it into short-term, interest-earning assets such as Treasury Bills, fixed deposits, commercial paper, and short-dated bonds. The appeal is in the balance with relatively low risk, reasonable returns, and quick access to cash.
These funds are licensed and regulated by the Capital Markets Authority, with oversight by independent trustees and custodians.
The returns while modest, are competitive, often outpacing inflation and far better than idle bank savings. For diaspora investors managing obligations both abroad and in Kenya, MMFs are increasingly seen as an emergency buffer, a savings vehicle or a holding account while evaluating longer-term investments.
They are ideal for saving towards education, family support, or emergency needs back home, offering both flexibility and financial discipline.
Other fund options have emerged alongside MMFs. Fixed income funds target medium to long-term bonds and generally offer higher returns, though with slightly reduced liquidity. Balanced funds add a portion of equities to the mix, allowing for gradual capital growth for those with a higher risk appetite.
Fixed income or balanced funds can help diaspora investors grow their money steadily while planning for future goals like building a home or starting a business when they eventually return.
Some fund managers have also rolled out USD-denominated funds to cater to diaspora clients who want to keep their exposure in foreign currency while still investing in Kenyan instruments.
However, uptake among the diaspora remains limited. One key barrier is trust. Many investors have been burned by informal chamas, dishonest land brokers, or opaque off-plan property deals.
Another is investors are unaware that regulated financial products now exist in Kenya with reasonable entry points and consumer protection.
Addressing this requires collective action. Financial education must be prioritised. Institutions should simplify investment terms, provide clear, timely performance data and streamline onboarding for diaspora clients.
Diaspora associations and community leaders can also play a role in sharing credible information and countering the notion that property is the only safe investment.
This is not to say that real estate does not have a role. It does, and always will. But a smart investor does not put all their funds into a single type of asset.
Diversifying across liquid and fixed investments builds resilience, cushions against downturns and creates flexibility to meet different life goals, whether it is paying school fees, retiring early or responding to a family emergency without selling land at a loss.
Kenya’s financial sector is now in a position to support that kind of thoughtful planning.
For the diaspora, it is no longer just about sending money home, but about growing it wisely, protecting it, and keeping it accessible. The products are available. The regulation is in place. The tools exist.
The next step is yours. Do not just build back home. Invest with purpose. Let your money grow where your roots are.
The writer is CEO and Principal Officer at Britam Asset Managers
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