Although Mr. Githae was right that generally interest rates in
the U.S were lower compared to Kenya, other factors could
impede additional investments in Kenya. The volatility of
dependent variables in Kenya worries local and foreign
investors. An example is the overshooting currency rates.
Currently, Diaspora investors gain more out of their money by
exchanging it into Kenya shillings at the current prevailing
rate of Ksh 101 to the dollar. However, they would face
similar losses if the shilling strengthened and they had to pay
back the loan in U.S Dollars. With all honesty, if the goal was
to make the most money out of interest rates, the best country
to borrow from would be the United Kingdom or Japan.
When the Kenyan lending interest rates were at 16.5%, Japan
was at 1.2% and UK at 0.5% compared to the U.S’s 3.3% by
end of 2014. Regardless, the intent seems valid.
Peter came to the U.S on a green card and became interested
in computers. He had a rough start working as sales personnel
at a gas station at a minimum wage of $7.5 while saving to
pay for fees to train on computers. Within a couple of months
he was already working at Flextronics. When asked about Mr.
Atwoli’s claims, he laughs softly. The opportunities abroad
are beyond imagination. You become what you strive for.
There is no one he knows who works menial jobs but he
asserts that Kenyans work many hours mostly to pay for fees
or send money back home for family members especially to
pay sibling’s fees. Peter has big dreams. He has saved enough
to join college and has been accepted to start a course in
bioinformatics this fall. Although he would do anything to
take back the decision of depending on his family as investment partners, he is glad that now there are many opportunities to accomplish projects in Kenya without a need for
entrusted stewards or physical presence.
He carries the burden of a loan whose profits he will never
see but his ambitions to remain an investor in Kenya are far
from being dimmed. He has paid up almost half the loan.
Some of the opportunities to accomplish projects in Kenya
are through entrusted companies registered and validated in
Kenya. Their main purpose is to help people in Diaspora
invest their hard earned money and be guaranteed of their
investments. Peter urges Kenyans in the Diaspora to partner
with these companies which offer the support he needed and
not make his mistake. He has plans to raise capital in a year’s
time to exploit the interest rates disparity between Kenya and
the U.S in order to make profits.
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