Profile of Kenyans in the US and What it Means for Kenya

By Kefa M. Otiso, Ph.D.

There is a lot of current national interest in the role of the diaspora in Kenya’s development. In this commentary, I’d like to shed some light on the Kenyan diaspora in the US and how to best to use it and the rest of the diaspora to develop Kenya. The US Census reports that there were 40,680 Kenyan immigrants in the US in 2000. This number is unrealistically low because it is based on sample data that only captures first generation Kenyan immigrants. Nevertheless, this census dataset contains an interesting profile of Kenyans in the US; and has important implications for the country’s development.

Gender and Age Distribution

Most Kenyans in the US are men and are in the economically active age groups. Specifically, 54% of the 40,680 Kenyans in the US in 2000 were male while 46% were female. Eighty-seven percent (i.e.,35,345) of them were 15 to 64 years old. Of these, 65% were in the 20 to 44 age bracket. At 32 years, their median age was 3 years lower than that of the general US population.

Income

On average, Kenyans in the US make more money than many African immigrant groups and Americans. Specifically, Kenyans in the US in 2000 had a per capita (personal) income of $28,000 (or nearly Kshs 2 million at current exchange rates). This income was higher than that of all other black African immigrants such as Nigerians ($27,000) and Ghanaians ($23,000) but less than that of the Egyptians ($33,000) and South Africans ($42,000) -- who are mostly white. Moreover, since the per capita income for the general US population was $21,587 in that year, the average Kenyan immigrant earned nearly $6,000 more than the average American. Similarly,the median family income for Kenyans was $55,000 or nearly $5,000 more than the general US population, $2,000 more than Nigerians (the next highest black African immigrant group), nearly equal with Egyptians ($57,000) but much less than the South Africans ($81,000) who topped all African immigrant groups.

One income measure that Kenyans fared poorly on is retirement income. At average income of $11,000 in retirement income, Kenyans were at par with Ghanaians but significantly less well of than Nigerians ($15,000), Egyptians ($19,000), and South Africans ($30,000). Although this low retirement income could be due to their relatively recent arrival in the United States, it might also be due to their low level of savings or investment in US retirement programs. It is also noteworthy that Kenyan men made nearly $10,000 more than their women counterparts in 2000. Overall,although Kenyans in the US generally make far more money than their brethren in Kenya, they also spend more because the cost of living in the US is very high.

Educational attainment,Employment and Vehicle Ownership

Most of the Kenyans in the US are well educated and have very good English language skills. Nearly 52% of Kenyans in the US in 2000 had a bachelor’s degree or higher compared to 28% for the general US population. And of the Kenyans with at least an undergraduate degree, 23% had a masters or professional degree (e.g., medical degrees). The only other African immigrant groups with more people with undergraduate degrees or higher in 2000 were South Africans (55%), Nigerians (59%), and Egyptians (60%). Although the US has significantly tightened its immigration laws since the September 2001 terrorist attacks,one of the ironic silver linings of this is that the new laws have made it harder for nonimmigrant Kenyans to drop out of school. As a result, many more Kenyans are staying in school and graduating at even more impressive rates.

The 2010 US census is likely to show a significant increase in the number of Kenyans in the US with undergraduate degrees or higher. The high educational attainment of Kenyans in the US is also due to the fact that Kenya has since the 1993-94 academic year (i.e., September 1993 – May 1994) led other African countries in the number of students in American colleges and universities. All things being equal, one would expect more populated countries like Nigeria, Ethiopia and Egypt to have more students than Kenya.

Because of their high educational qualifications, English language skills, and good work ethic, many of the Kenyans in the US are professionals working as educators, managers, business proprietors, clerks and health care attendants. According to the 2000 census, most of them are employed in the educational, medical (non-hospital), and miscellaneous business sectors of the economy. Their relatively high incomes have helped them (together with Nigerians, Egyptians, and South Africans) to rise to the top of other African immigrant groups in the US in the rate of personal vehicle ownership. Contrary to the widespread belief in Kenya, Kenyans in the US cannot do without reliable personal vehicles if they hope to go to school and make ends meet. This is because American cities are some of the most spread out in the world and have a generally poor public transport system. For example, the City of Houston, Texas, has an area of more than 600 square miles (1,600 km²) -- slightly more than twice the size of Nairobi City.

Home ownership

Most Kenyans in the US are renters rather than homeowners. In 2000, slightly over one-third of Kenyans in the US owned their homes while the rest were renters. According to census data, Egyptians and South Africans were the only African immigrant groups with more homeowners than renters. At a median home value of $180,000, Kenyan homes in the US in 2000 were, on average, worth $30,000 more than those of other black African immigrant groups including Ghanaians ($149,000) and Nigerians ($148,000). The median value of Kenyan homes was similar to that of the mostly “white” Moroccans ($180,000) but less than that of Egyptians ($210,000) and South Africans ($249,000) that are also mostly “white”. Given the 2000 to 2006 US real estate boom, it is reasonable to assume that a higher proportion of Kenyans in the US now own homes with even higher median home values.

This is a remarkable achievement considering the fact that most Kenyans (77%) migrated to the US between 1986 and 2000, long after the other African groups, especially Nigerians, Moroccans, and Egyptians, had started immigrating to the US in large numbers. In fact, 43% of the Kenyans in the US immigrated between 1996 and 2000 in pursuit of higher educational training and better economic prospects. Many others left for political reasons. Moreover, the period after 1986 has witnessed many US immigration law changes that have benefited many Kenyans. For example, between 1996 and 2005, 10,000 Kenyans immigrated to the US under the diversity lottery program while close to 2,700 skilled Kenyans did so using work visas. Nevertheless, only 25% of Kenyans in the US in 2000 were naturalized US citizens; making this one of the lowest naturalization levels of any major African immigrant groups in the US. Although the naturalization level of Kenyans in the US has increased since the September 2001 terrorist attacks, it is unlikely to be as high as that of Nigerians for instance. Hopefully, this high level of enduring loyalty to Kenya would reassure those sections of the Kenyan government that have been slow to enact dual-citizenship legislation.

Family matters

Fifty-three percent (or 19,040) of the 36,015 Kenyans aged 15 years and over in 2000 were married with children under 18 years of age. The rest were unmarried, divorced, separated or widowed. Prior to the introduction of the US diversity lottery in the mid-1990s, most Kenyans in the US were unmarried. But because the lottery enables winners to immigrate with their families, more Kenyans are now married than single.

Where in the US do they live?

Over eighty percent of the Kenyans in the US in 2000 were and still live in the states of Texas, California, New York, and New Jersey. The first three states are also some of America’s most populated and economically prosperous. In general, most Kenyans in America live in large cities like Houston (Texas), Los Angeles (California) and Atlanta (Georgia) because such cities tend to have many fellow Kenyans, colleges and universities, and job opportunities. Moreover, Houston, Los Angeles, and Atlanta are in a warm climate similar to that in most parts Kenya.

Development Lessons for Kenya and the Diaspora

The foregoing profile of Kenyans in the US has many implications for Kenya and its and its diaspora’s development. To start with, the 40,680 Kenyans captured by the 2000 US census had a combined income of slightly over $1 billion >or about Kshs 79 billion at current exchange rates. If you add the Kenyans who were not counted by the census plus the thousands that live in Canada, Europe, other African countries, the Middle East, Australia, and New Zealand; the substantial economic power of the global Kenyan diaspora becomes clear. This is why the diaspora has been able to remit or send back to Kenya an estimated Kshs 50 – 70 billion annually in each of the last few years. If this income were productively invested, it could go a long way in transforming Kenya into a real “African Lion”.

Unfortunately, much of the money that is sent back home is often put to unproductive uses such as buying food, consumer goods, and repaying family debts. Some of it is also used to pay for family and friends’ healthcare and education costs. As important as these needs are, they tend to be consumption- rather than production-oriented. The government can do a lot to help convert more of our diaspora remittances into productive investments by delivering more basic services e.g., healthcare to the country’s population. One also hopes that government officials will not seize on the beneficial economic impact of the diaspora’s remittances to fleece the country through scams like Goldenburg and Anglo leasing.

The government must also realize that remittances are neither a reliable nor long term source of foreign exchange because they tend to be highest among first generation immigrants and decline with substantially as the remitters spend more time abroad. Moreover, the remittances can only last as long as the economies of the US and other rich countries prosper or as long as these countries choose to permit such money transfers. In the event of a serious economic downturn in the more developed countries, their governments could choose to restrict the amount of money that can be remitted. They can also restrict remittances it they get to a level where they become an unacceptable economic drain on these countries.

This scary scenario is no idle speculation as sections of the US population have begun to call for a 10 -15% tax on immigrant remittances in order to plug holes in the social service budgets of local governments in southern border-states like Texas. Meanwhile, tougher immigration laws are already making it difficult for Kenyans to immigrate to the US and other rich countries thereby limiting the future pool of remitters. Given all this, Kenya should use its current remittance windfall to foster its long term economic growth. Kenyans in the diaspora should also help fellow Kenyans to keep the government honest otherwise their indirect taxes (i.e., remittances) could backfire and promote repressive governments that could ultimately cost the diaspora an arm and a leg by undermining the economic growth of their dependants. In the 1980s and 1990s, for example, diaspora remittances helped the KANU regime to maintain reasonable foreign currency reserves that not only helped in defy local and international pressure for reform, but also helped it to stay in power longer than would have been possible. And even when the regime’s reckless social and economic policies ultimately forced the diaspora to worker harder or borrow money to help cushion family and friends from the negative effects of its policies, the regime still benefited indirectly from the increased remittances because they somewhat depressed citizen demands for public services and greater political openness and accountability. Additionally, the diaspora had to endure the psychological pain of constantly agonizing over the wellbeing of family and friends in Kenya, not to mention the loss of time and money that could have been used more productively. Should the diaspora read this as an argument to stop supporting family and friends in Kenya? No. Rather, this is a call for members of the diaspora to be vigilant and to help promote responsible government in Kenya, failing which their hard earned remittances will do precious little for the Kenya in the long term.

It is also important for the government and the Kenyan diaspora to realize that diaspora investments can, in some cases, undermine the country’s social cohesion and economic development. As evidence from other parts of the world shows, immigrant investments in assets like land, can inflate its cost and make it unaffordable to those who really need it for survival. Besides, if the diaspora fails to use assets like land productively, this can undermine important national priorities such as food self sufficiency. Remittances from the diaspora can also worsen regional and local income inequalities and contribute to problems like crime. Areas with many people in the diaspora can also develop a “migration culture” that makes those left behind to prefer migration over local economic opportunities. This can undermine local economic development since most people will never be able to go overseas and must use locally available resources and opportunities to improve themselves socially and financially. Without awareness of the negative effects of remittances, the government will not be able to develop measures to minimize these effects. On its part, the diaspora should endeavor to minimize investments that hurt rather than help local communities. Examples of beneficial projects include micro-enterprises such as small agricultural processing plants that can enable family and friends in Kenya to be financially independent.

Given the high educational and professional achievements of Kenyans in the US (and most likely elsewhere in the Diaspora), it is difficult to understand why the government scarcely uses them as consultants in their respective areas of expertise. If government must use consultants from overseas, then it is advisable to make greater use consultants from the diaspora because they would not only save government tones of money, but would also use their native knowledge of Kenya to produce more socially relevant development projects that will take Kenya further than the white elephants that litter the countryside.

As the development role of the diaspora grows, members of this community should endeavor to avoid wasteful investments such as ostentatious rural retirement homes that they are unlikely to use. Granted that our culture puts a premium on such investments, they need not be palaces when modest/functional houses will suffice. As many urban Kenyans and members of the diaspora, are increasingly finding out, the journey “back home” to retirement is often in a casket. With such poor odds of actually getting to enjoy the rural palace, it is unwise for the diaspora to squander its hard earned cash on “dead capital” projects as rural palaces. Instead, the money spent on these showy projects should be productively invested in small businesses, urban rental houses, and the stock market. These investments can not only yield beneficial returns for individual members of the diaspora, but can also generate an income that can more sustainably support family and friends in Kenya besides growing the country’s “live capital” or capital that can be used to generate more capital. It is interesting to note that one key characteristic of poor countries like Kenya is their high ratio of dead to live capital while more prosperous countries like the US have the opposite condition. Hopefully, Kenyans in the diaspora will help to change some of the country’s outdated but expensive cultural practices such as the need for rural palaces.

To be more effective in aiding Kenya’s development, members of the diaspora should not neglect their financial well being in their new home countries. As noted earlier, Kenyans in the US had some of the lowest retirement incomes in 2000. Whereas one hopes that things are better now, it doesn’t take much analysis to see that it is the Kenyans that have succeeded in the US elsewhere that are in the best position to help Kenya. To borrow a leave from Christ, you need to remove the log in your eye before trying to remove the speck in another person’s eye. Moreover since many members of the diaspora are raising children abroad, they should seriously consider the educational and financial future of these children lest they underachieve and join the underclass in their new home countries. This the more reason for members of the diaspora to put their money in instruments like stocks or urban houses that can aid Kenya’s development now and still be used to finance the kids’ education later on in life. Besides, stocks and other easily convertible instruments can be passed on as inheritances to the next generation. In contrast, the rural palaces that members of the diaspora seldom spend a night in will in the future be of little or no value to their “American” or “British” kids.

A quick word of advice for our Kenyan sisters in the US and elsewhere in diaspora: prepare yourself financially for the very real possibility of spending the rest of your life without a husband, whether by design, divorce, sickness or death. Since lower educational levels are a major reason why Kenyan women in the US earn less than their male counterparts, female members of the diaspora should try to improve your educational qualifications in spite of the heavy domestic responsibilities that they often shoulder. Even happily married women need to invest in themselves for purposes of personal fulfillment, supplementing family incomes, or even being the primary bread winners of their families.

Finally, although Kenya continues to benefit from its large US diaspora, it is important to remember that this benefit derives, in part, from the ability of the US to attract talented individuals from allover the world and to provide them with conditions that allow them to maximize their individual potential. Kenya should similarly aspire to make the most of its citizens’ potential at home. It is not wise for any individual or country to rely on the charity of others. Isn’t there a Swahili proverb that says “Mtegemea cha nduguye hufa maskini” (Whoever depends on another dies poor)? My hope is that this proverb will not come true of Kenya. It need not be. Fortunately, Kenya seems to be waking up.

The writer is an associate professor of urban and economic Geography at Bowling Green State University, Bowling Green, OH, US, and can be reached at oyomose at hotmail dot com