More than one in every three Kenyan youths would leave the country to find a better job abroad, escape poverty or pursue an education if given a chance, a new survey has found.
The study conducted by a pan-African research network, AfroBarometer, reveals that at least 35 percent of Kenyan youth have at some point considered leaving the country to live abroad.
The research released yesterday was conducted in 33 other African countries.
“The most popular destination among potential emigrants is neither Europe nor North America, but another African country. This suggests that if you have a country near you that is thriving economically then you better move there so Europe should now start considering how to boost Africa’s economic growth because clearly they may not have a lot of desire to go to Europe,” Afrobarometer Executive Director Gyimah Boadi said.
Kenya was ranked 20th among the countries comprising youths who have high desire to migrate from Africa, behind its neighbours Uganda and Sudan where more people wanted to leave and stay abroad.
Cape Verde, where only 42 percent of the citizens want to stay, had lowest score, followed by Sierra Leone where 59 percent want to migrate and Gambia where 56 percent have thought about migrating. Togo and Sao Tome complete the five worst performers with 54 percent of residents in both countries angling to leave for a better life abroad.
Mauritius had the best record, according to the survey.
A 2017 World Bank survey found Kenya had the highest rate of youth unemployment in East Africa, with 17 percent of all young people eligible for work lacking jobs. Neighbouring Tanzania and Uganda had comparable rates of 5.5 and 6.8 percent respectively.
Mr Boadi said that contrary to popular belief that most Africans would like to move out of the continent, intra-continental migration is a fast-growing phenomenon.
The survey found that young adults and highly-educated citizens are most likely to consider leaving Africa, pointing to a potential brain drain on the continent.
Potential emigrants are also more numerous among men (40 percent) and urban residents (44 percent) than among women (35 percent) and rural dwellers (32 percent).
At 65 percent of its population not considering migration, Kenya ranks better compared to Nigeria where 64 percent want to stay. In Tanzania though, only 14 percent want to leave, ranking among the least countries where people want to migrate from. Madagascar reported only 13 percent of potential emigrants.
Europe still remains a strong attraction for African emigrants compared to North America with the two regions attracting 27 and 22 percent of potential emigrants from Africa.
“Migration in most cases is not a bad idea since both the destination country and the country of origin stand to benefit. Africa receives close to $34 billion every year from their emigrants living abroad. We however need a fundamental change on how we approach employment and traditional forms of agriculture to make people comfortable at home,” said Jeffrey Labovitz, IOM Regional Director for East and Horn of Africa.
World Bank pushes G-20 to extend debt relief to 2021
World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.
“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.
He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.
The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.
People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.
For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.
Debt burdens, already unsustainable for many countries, are rising to crisis levels.
“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.
Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans
The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.
“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”
According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.
Tighter Reins on Platforms for Mobile Loans
The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.
Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.
Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.
Scope Markets Kenya customers to have instant access to global financial markets
NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options.
This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.
The Scope Markets app offers clients over 500 investment opportunities across global financial markets.
The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.
The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).
The platform also offers an enhanced client interface including catering for those who trade at night.
The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour; Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).
The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.
Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”
He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.