Kenyans wanted abroad more for their brains, creativity
Kenyans in diaspora.
In contrast to Kenya’s traditional export of low- and semi-skilled labor, the export of skilled labor from Kenya is increasing, particularly in technology and finance.
This assessment is based on a report from the World Bank.
The report notes that, over time, net services exports have grown and are now significantly more than net exports of products.
Remittances have grown, totalling US$4120 million (Sh616 billion) for the last 12 months to August 2023 compared to US$3992 million (Sh597 billion) in the same period the previous year, an increase of 3,2 percent.
The World Bank report reads in part, “Historically, low-skill tradable exports (mostly logistics and transportation) have accounted for 60 percent or more of Kenya’s services exports, but recently global innovator services have been playing a larger role, growing as a share of total services exports from about 5 percent to above 20 percent by 2019.”
Transport and communication have had the largest export labor income among services over the previous ten years.
Health and financial services round out Kenya’s top five outsourced industries, with education coming in third.
Additionally, the report points out that for every Sh10 earned by a highly skilled worker engaged in the export of ICT services, another Sh15 goes to a less skilled worker who is directly employed, and Sh4 goes to less skilled workers through linkages, demonstrating how further development of skilled services can also support less skilled workers.
“The forward service linkages attributed to total unskilled wages are substantial and twice that of skilled wages, hence, a very large number of unskilled jobs (especially in transportation) are supported through forward service linkages,” said Elwyn Davies, a World Bank Senior Economist. – Business Insider Africa
