Denzel Musumba

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Kenyans abroad lose billions in failed projects.

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About half of businesses started by Kenyans living abroad in the past five years have collapsed due to poor management and lack of access to investment information by the entrepreneurs, according to a new report. The survey, done by the International Organisation of Migration (IOM) on Kenyans living in the UK, indicates that many have lost millions after seeing their retail, property and agriculture enterprises fail to take off. A joint Central Bank of Kenya and World Bank study last year showed that Kenyans in the diaspora are sending home an estimated $1.9 billion (Sh152 billion) every year. “Almost half said their investments had been unsuccessful due to difficulties in accessing credit, insufficient information about formal investment procedures and how to best manage investments in Kenya while residing in the UK,” said the IOM report. About 43 per cent of those surveyed said they found it difficult to access credit to finance their businesses. A similar proportion said they lack sufficient information on investment opportunities, 33 per cent attributed the high failure to poor management, 27 per cent to prohibitive costs and a similar percentage to inadequate infrastructure.

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