Not Your Parents Economy
I was reading a post on Kenyan Pundit about more and more people deciding to relocate back to “Africa” after having lived in the west for several years (I tried to leave a comment, but for whatever reason, it wasn’t posted, which is unfortunate because I think that post could have elicited quite a few responses if the comment moderation wasn’t so strict).
Anyway, so I decided to use that post and expound on it’s points here because I think that it is an interesting discussion about how younger people are working in a very different environment from that of their parents.
The global economy has become so integrated and technology has made it possible for so many people to communicate in real time without ever leaving their living rooms that I’m beginning to wonder whether in a few years, it will even matter where you are based (physically), especially if a lot of your work is done over computers and if it doesn’t require physical labor.
For example, I was having dinner with a friend last night and she was talking about all of her facebook connections and as she was talking to me, I began to realize just how many of her friends seemed to be constantly moving with their jobs: From America to Kenya, South Africa, London, India, etc, etc…
You even have to think twice about buying a house nowadays because you could be relocated from one end of the world to the other.
So, if this is the reality of what workers are going to be facing today, you really have to start thinking globally, especially if you are anywhere in Africa because those economies are so small.
So, I’d like to get comments from people on what one should plan for before they decide to relocate back to Kenya (& don’t sugarcoat your comments with nostalgic dreams). Give people the real hard facts that they’ll have to confront once they get there.
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Speaking of this global economy and the duality of cultures, I just happened to stumble upon this interesting blog by a Kenyan Indian writer and poet. She seems to be a complete blend of both cultures (Kenyan & Indian) with neither one predominating. So, check out the blog it’s quite an interesting read.
Hi KE and Pimpin Curly.
This is directed at Pimpin Curly. First let me say you have a right to decide whether or not to relocate to Kenya. It’s your right. Let me address some of your concerns nonetheless.
Internet connection will soon be very fast. The SEACOM fibre-optic cable is complete and is now conducting testing and it’s only 35 days away from going live. You can read more here http://www.seacom.mu/index2.asp .TEAMS the govt sponsored fibre cable is also expected within this month. The Telecomms developments are actually very exciting.
Regarding the strikes those are not daily occurences. I havent heard of a university strike for about a month or two. Traffic jams are really present in every part of the world from Washington DC to Amsterdam to Nairobi.
On the news front bad news is a worldwide phenomena. Today all the international press is talking of a certain Airfrance plane crash. The press hardly ever covers positive news. The Kenyan media though I agree is notorious for shaming Kenya both locally and internationally but that is not sufficient reason not to relocate.Kenya by the way is not overpopulated. With a land surface area bigger than France we have a population of only 38million. France’s is over 60million.
On the mosquitoes and disease front that is just plain arrogance on your part. If you are a Kenyan you grew up with those inconveniences and you cannot claim that is the major reason someone would choose not to relocate. The states has swine flu, west nile virus and other unknown diseases too not to mention the HIV so prevalent in DC and NYC. As for capital accumulation you must be joking. The States is the most consumer oriented society on Earth with people indebted to an unbelieveable degree. You obviously havent read the Equity story or the fact that there is now a steady growth of bank account openings in Kenya.
Now turning to KE’s question. I am based in Europe and not quite ready to relocate because I haven’t accumulated enough financial resources yet to allow me to enjoy the same standard of life I live here.
Since you asked us not to sugarcoat I will say security bothers me alot. Thats one legitimate point Pimpin made. But as to what one should plan for.
1. First you should have somewhere to stay.
2. Should have personal means of transport(car).
3. You should have a sufficient financial base preferably forex denominated in dollars or euros in a reputable bank.
4. Some solid investments in T-Bills or T-Bonds because this is the safest form of investment.
5. A well researched plan on how you will generate income. Read either a secured job or business that has no option of failure or very low risk.
6. A travel document that can allow you to leave should things go completely wrong.
I am an eternal optimist and believe Africa and Kenya in general has a very bright future. To see my plans for Kenya read my blog on http://jellyfishcoolman.wordpress.com/ Given that some pretty important people live in Kenya read diplomats, expatriates, tourists and some 38million of our brothers, sisters, parents and friends I see no reason why we couldn’t successfully reintegrate or relocate there.
Jellfish:
If you were to give me a figure, what would be your ideal number of having “enough financial capital” be?
This is the dilemma for those who thinking of moving back, but don’t have the luxury of relying on family money.
Assuming you were an aspiring entrepreneur, would you be willing to just up and go and take your chances? i.e. cash out your 401K and head back? You’ll never really save “enough” with a salary. You either have to take a risk and cash out & go and raise capital in the west and then go.
These are the questions.
Reply to KE.
Yes I agree it is a dilemma. A figure is really based on personal preferences. So let’s assume you had a place to stay in some upmarket place in Nairobi and a car. Then the next thing would be if you have children how much is their school fees? How much is coverage for medical insurance from say BAI British American Insurance?
After calculating all your monthly costs from electricity to food to transport you will come up with a monthly figure in Ksh. Then think of the business you plan to open. To do this you must have decided what you want to do before hand. So if you were into growing mushrooms for example you need to have the money for the land and the capital to start. If you wanted to start a software firm you need to have at least the comps and the cash to rent out a premises.
If you were really to force me to give a conservative and realistic figure I would say you should have at least €150,000 to €200,000. You could divide this according to your needs. But some people could do with less I have colleagues here who tell me with €50,000 they could go back. Really it’s all based on personal taste.
With a very brilliant business plan yes it’s possible to cash out a 401k and move. It wont be easy because after leaving in the States or Europe your mindset changes. You may find yourself shocked by the crudeness of folks back home but that is a small inconvenience and would be solved within a year of relocation. The biggest issue is really the cash flow it has got to be sufficient.
Jellyfish:
You are absolutely right when you say that the biggest issue is cash flow, especially if you can’t rely on family money being there.
However, let me add some additional points here.
Before the post-election violence, there was a lot of hope from Kenyans around the world and quite a few people started moving back, but after the violence, a few things started changing for many kenyans in the diaspora.
1) Those who had green cards, but had refused to get citizenship (because they didn’t want to have to give up their kenyan citizenship)have now shifted. They are going for the citizenship.
2) Those who didn’t have their papers are now more focused on getting them. They realized that the situation was not as hopeful or as stable as they had been led to believe and they want to be able to have one foot there and one foot here (just in case things don’t work out). The people in this group will not move back until their papers are ready.
3)The sense of hope was diminished by the violence and a lot of people had to put their plans on hold, mainly because they believe there will be trouble again in 2012 and they believe it will be worse than what we saw in 2007. Nobody really knows and this unpredictability is causing people to take a wait and see stand.
I have a friend whose fathers owns townhouses in Kileleshwa that he’s been trying to sell to his Indian tenants. They are all refusing to buy because they think that things will flare up again in 2012 and they don’t want to be tied down.
Raila is not going to let another election get taken away from him and who knows where that will lead?
As someone who has recently made the decision to finally relocate, the security and violence issues are my main concerns. I’m now even more freaked out with your mentioning of the 2012 elections. I left Kenya in the mid-eighties when car-jackings and mungiki were unheard of. The worst violence we had ‘witnessed’ was ‘the coup’. Although I have visited several times, I know that visiting and living in a country are totally different.
I always had Jellyfish’s opinion of accumulating enough financial resources before I’m able to relocate. I have come to discover that ‘enough’ is unattainable and I’m packing up my four American children and relocating. Money is not everything and shouldn’t come first. My priority is their quality of life, which the west greatly lacks in. We may have to give up some of our material accumulations, and that’s a good thing! I want them to grow up smothered with the love of their grandparents and for them to have the opportunity to cultivate meaningful, life long relationships. They will continue in the same education system that they are currently in, so there will be certainly no down grade in that area. I don’t want them to have to think of themselves as a color first. Even the president of the USA has to do this.
I plan to live with my parents until I’m reacquainted with the country, stable in my business and familiar enough to make my way around.
KE.
Like I had mentioned earlier security bothers me be it electoral or otherwise. The points you raise with regard to papers are indeed whats happening. I think they are legitimate concerns by the diaspora. I think however there will not be another PEV because people dont have the appetite for it.
Actually I think the Central province will not field a Presidential candidate this time. They will however position themselves to take up either PM or Deputy PM or VP posts. You will also see a reaching out to other tribes. That will however be determined by the outcome of the new constitution. In other words they are looking for an insurance policy against any backlash.
Let me just commend Houstonlive for his courageous decision. He is offcourse right money is not everything. If you feel comfortable with your decision that is all that matters. Being a hopeful person I look for hope in the darkest of places. I think something is changing even as we speak. People of all tribes have realised ethnicity will not help their cause. This will lead to reduced competition for power and offcourse that will depend again on the final outcome of the constitution. If for example devolution can be crafted in the right way it could allow federal autonomy which would reduce the need for central govt. People would then concentrate on developing their own regions.
Jelly Fish,
I don’t know what stage in life you people are in, you sound like a bunch of old people with a few years left to live on this earth.
Kenya is just a sad story since Independence. The only reason a person would move from a leading western country to Kenya is to lick wounds of a lost battle.
I wish you could tell me something I don’t know about Nairobi. I really wish you could. I could probably teach you how to go about doing stuff in Nairobi.
Be concious of the truth my brother it’s the only thing that will set us free from all the chains of Ignorance that keep us from progressing. Think about it !!
Do you know its funny going through some of todays pictures on the Kenyan news(More depressing news).. i came across this picture… Kenyans are used to this kind of thing.. They call call it Rabsha ndogo ndogo !!!
http://www.nation.co.ke/News/-.....index.html
Maybe so. The competition in Kenya is not as extreme, but maybe (also) people’s parents have stuff like property or businesses which they want their kids to inherit as they get older. And I suppose that raises another issue of adaptability.
I’ve said before that I have yet to see a Kenyan, inherit a business from their parents and then grow it to the levels at which I’ve seen Indians do it. I’m not quite sure why that is, but I was having a lengthy conversation with a friend about this and he said Kenyan parents don’t tell their kids about their businesses until it’s way too late. Their not like the Indians who bring their kids into the business when they’re like 9, so that by the time they are 30, they are fully ready to take over and even expand it. Whereas a Kenyan, at 30, would be where the Indian was at 9, meaning just starting to learn the business.
However, it does sound like a lot of people leave for the reasons that Houston outlined: i.e. they want their kids or themselves to have a sense of connection and community to their country, to their culture and with their families. This is very important for people who have kids.
But whatever the reason, you’ll need money. So the question is, how are you going to get it?
My greatest is respect is to patriots who love their country despite its shortcoming and challenges. To me east or west home will always be best. I have even friends living even in Manhattan where streets are paved and clean but they miss home.
I have no beef with those who relocate abroad to search for economic opportunities, but I respect them more when they invest back home and make a positive contribution to their homeland.
We here in spite of the challenges, continue to be optimistic and in our own small ways try hard to build this nation. One day we know Kenya will become a great nation, one to behold and wonder at.
As for the haters, they may as well get citizenship in other countries, stop engaging in stupid debate that does not help anyone. They should even wipe out of their life history whether they are where Kenyans (since they are ashamed to be even associated with it) . This is because winning and complaining never helped anyone since Adam and Eve.
Great post, good discussion.
It’s interesting to live abroad and see first hand what people who may have better chances at home go through to live in the ‘first world’
I think the only thing I worry about when I am in Kenya is security.
It is like I never left anyway – I coomunicate with them on a daily basis in real time……
But I do really enjoy being there.
noni,
There is no way anyone can hate on Kenya and there is no way of erasing my Kenyan past.
You see, Its hard explaining to a person who has only heard about Manhattan through friends. If you lived there and had a management Job in a company like Goldman Sachs or Haliburton or Eckerd then may be I could listen to you.
But the furthest you could probably see is just what you hear and Imagine. Thats why such a conversation with a person like you is a pointless exercise.
I don’t know how to explain all this. Its just a sad affair that I can’t even explain it. The only thing I can say is living in Nairobi is just plain stupid. Even If I had more money than I already have I’d still live in the west. Since this is where everything is happening.
Keep on believing all those things they tell you on NTV and KBC and you’ll remain in the same state for the rest of you life
“Ati Kenya is the most beutiful place in the World”…. You got to be Kidding me !!!
” Ati Kenya has the smartest doctors in the World”
” Kenya has the best lawyers in the World ”
” Kenya have most beutiful girls…. ” Unless you have your eyes closed…
” Ati Kenya has the best schools in the World”
” Ati Kenya has the smartest students in the world”
All this baloney the Kenyan media keeps on feeding you fools !!
You should stop and ask yourself this question… If Kenya had all this “best in the world status” why is it facing what its going through right now.
Noni:
At the end of the day everyone will make their own choices and do what works for them. So, this post is really not about hating on Kenya or loving the west or anything like that. It’s really about telling others what your experiences have been in regards to moving back and giving them a little idea of what to expect or what not to expect.
However, I do get sick of hearing about all these Kenyans who want to go back and start charities or NGO’s, still believing that, that is the answer to poverty reduction. It’s not and the evidence is clear: 50 years after independence and 10 million kenyans are still facing hunger issues despite all the charity that has been poured into that country.
India and China have shown that the answer is entrepreneurship and capitalism because that is what creates NEW WEALTH, not charity and welfare, which just perpetuates dependency.
So, I must say that whenever someone tells me that they are moving back to kenya because they want to make a difference (by setting up a charity or NGO)I honestly just want to puke.
That’s why I prefer to hear from people who are going back to start businesses. I don’t even want to hear from people who are just going to become corporate drones (most will have been laid off by 45 anyway).
The only thing we can all agree on is that you’ll need money. Whether you think Kenya is good or bad is not even the question. The issue is money and how you’re going to get it.
After working as an engineer for GE in the US I finally decided to pack up and relocate back home. Initially I was worried about whether I’d manage to settle in, but those fears were quickly dispelled after I realised there was lots of opportunities for me in my chosen career change of photography. Then came the election and subsequent violence which made me second guess my decision to move back. But I decided to stick it out and stay here.
As a few have pointed out, security is my biggest concern, more so thinking about 2012. But beyond that, I have no regrets absolutely for having moved back. I got a chance to visit Boston briefly this past May, and the fact that I couldn’t wait to get back and continue with my work here in Nairobi was more proof that I had really decided that Kenya was the place to be for me.
In terms of income, I moved back and lived on about 30k USD savings, which lasted me the better part of the year as I was setting up my photo business. I have gone through some rough patches with no work coming in, and bills still needing to get paid. But I now see a steady stream of work coming in, and in the next couple of months will even be able to turn in a profit that I will invest.
I say to each his/her own. If you don’t want to be in Kenya, that is your prerogative. If you do, feel free to come back and join us. In terms of preparation to move back, I believe the psychological component is far more important than the financial component. If mentally you are not prepared to live here, no amount of money you have will make you stay.
C-BO: Truth be told, the number of immigrants/Africans holding these types of ideal jobs are the extreme minority, and I doubt they would argue the way you argue. On the other hand, the original story that KP quoted on the Washington Post tends to be the very norm-college educated Kenyans (some educated in the very US) working in nursing homes or driving cabs and trucks in the US.No offense intended, but majority of them wouldn’t do that back home and are not proud of it and are in it just for the money.If there are opportunities to make more, the same or even less money back home, people pack up and move back instead of living with injured pride.
In the case of KP, she has a Harvard law degree but back home is just better for her. ‘Quality of life’ can only be defined personally.
I lived in the U.S. for three years, and maybe that’s where everything happens as you claim, but I know first-hand that In fact, few immigrants get to partack of ‘everything’. The US, it’s not all it’s cracked up to be on TV.
Finally, it’s not even patriotism/the love of country that rules the day, it’s opportunity followed by personal preferences, or the other way round.
egm:
You went back to start a photo business? Now that is something I”d never think would work in Kenya just because it falls out of the traditional “professional” job structure that most people fall into.
I have a few questions for you:
1) What made you think that a photo business could work in Kenya?
2) What kinds of people use your services?
3) What kind of reaction did you receive from your relatives when you told them that you were going to quit a “good” engineering job in America to go back and start a photo business?
1. Nothing did. When I moved back, I really had no definite plan in place. But after talking to an established photographer who has been in the business locally for several years, I thought I’d give photography a try. Since then it’s been a matter of working hard at perfecting my skills as I build my client base, which is now substantial.
2. Private individuals who have events they want a photographer to cover, the bulk being couples getting married. But I am trying to shy away from that and see about getting commissioned jobs that will have me travelling around the country. I have an upcoming job for one of the magazines that will involve travelling with a writer who will chronicle the trip as I do photography supporting the article. I have also gotten work from academic/corporate entities.
3. It took almost 6 months for my parents to come to terms with my decision. Now they happen to be my biggest marketers. As for other people, well, what they think doesn’t really move me much, as long as what I’m doing is legal and is paying bills and leaves me enough to invest.
In terms of traditional professional job structures, I have a couple of friends who have quit their jobs and have started their own ventures. One in particular left a high paying corporate law gig in the US to come and start a data storage (think Iron Mountain) company in Kenya, and she says it’s taken her 3 years for it to stabilize and finally turn a profit. Going into a business that is outside the normal expectatitions requires a hefty dose of patience in addition to careful planning.
PKW,
If you followed my argument… I said earlier that no amount of money could change my mind about where I chose to live. I live very comfortably here and I learn something new here every day. I work and pay taxes. I really don’t mind paying taxes here any taxes I pay can be accounted for.
I visit Kenya from one to three times a year. I can’t even Imagine living there for more than three weeks. If I stay for more than a week without touching the hundred dollar bill…. I feel like something is not adding up.
I agree with what you said in you last assertion though… “it’s not even patriotism/the love of country that rules the day, it’s opportunity followed by personal preferences, or the other way round”.
Anyway have fun counting the Kenyan Shilling. For those who chose to relocate I wish you all the best.
BTW PKW,
The number of Immigrants working for such of positions is increasing. The head of Citigroup is and Indian guy Vikram Pandit he came to America as an Immigrant. There are many others I can name to you.
Nonetheless, the fact that we are minority does not make working towards better management positions in such institutions less important.
I cant understand why people say there are no opportunities in Kenya. The government programs are being rolled out to each constituency. You can now access funds from government through Kenya Youth Fund or microfinance instituitions. Africa is now the fastest growing region in the world economically.
This is an interesting post. It would be nice to hear from someone who relocated with children. I have to agree with KE about entrepreneurship. This is the way to go. In my opinion, the only way forward.
I agree with the person who said Kenyans need to stop believing that hype that the education system is the best, etc. We need a SERIOUS reform in that education system. Universities are still using 1960 books! Outdated equipment and all. For me, these are things that concern me as a parent.
Sometimes I want to move back so badly. Sometimes I don’t want to be associated with that place. Someone once told me, when it’s time for me to move, I will know. So I’m waiting ‘to know’.
On the money front, what I know is that Nairobi is one expensive place to live. I was nursing ideas of moving to places like Eldoret. After that post-election madness, that’s out of the question. I know people who are so happy they relocated. There can be peace of mind in Kenya. And there’s no place like home. It’s just that after living away and realizing that systems work and one can sleep soundly at night, it’s hard to move back.
Okay- enough said. Any parents who moved back? What’s the story with the children?
egm:
1)You must have had some sort of passion or interest in photography prior to moving back?
2)Also, on this idea of moving back without a plan: Had you been laid off and saw no other alternative? or did you have a comfortable cushion in Kenya? i.e. you don’t move back to kenya to become a photographer if you come from a lower-middle class family. Did you have a family business to fall back on if your photo business did not work out?
John Karanja:
Africa is still the poorest continent in the world today and if you remove the oil producing countries from the equation, you don’t have very much in terms of real economic growth.
Now, of course, this doesn’t mean that you shouldn’t move there if you have a brilliant idea and the fortitude to see it through, but let’s not exaggerate the reality.
1. Yup, I did have a strong passion for photography. I got my pro-level camera while still working and got books to teach myself photography.
2. Nope, didn’t get laid off. I left after my H1B expired. Barely 2 months after I got back to Kenya a former colleague who had left GE to join a competitor called me up and asked if I was interested in taking up a job similar to the one I had, but in Belgium. I was torn between accepting that offer (which was very very good, by the way) and staying with growing my photography business. Photography won. So mine is more an issue of what I’m passionate about winning over engineering. But even as I do this photography work, I haven’t forgotten my engineering, and have even been asked by the former colleague who had offered me the Belgium position to consider doing outsourcing design work for them. So at least there’s engineering to fall back on should this photo thing not work.
egm;
That’s an interesting issue you raise about the H1B because it’s goes back to an earlier point I made about people doing whatever they have to do, to make sure that they get their papers before they move back to kenya. Did this thought ever cross your mind?
And if you think about it, having citizenship from a rich, western country(because this is what people are going for now) would give one so many more options in terms of really being able to travel freely and tap into this wide global world.
It’s amazing how people’s attitudes changed after the pre-election violence. Before the violence, they were holding onto their green cards, refusing to get citizenship because they wanted to hold onto their Kenyan passports. Now, they don’t care. You’re a better off going full throttle and if Kenya doesn’t allow dual citizenship, then dump your kenyan citizenship. It’s worth it. It’s not like anyone in Kenya will ever deport you.
There’s an interesting article below on the number of people around the world who now hold multiple passports (legally)and their reasons for doing so are not sentimental anymore they’re practical.
Kenya is really behind the curve on this issue of dual citizenship.
http://www.nytimes.com/2009/01.....0dual.html
The thought of a green card did cross my mind. But I decided then that I wasn’t ready to go through the process to get it. I felt it wasn’t the end all and be all of survival having a green card, so it didn’t dwell in my mind for any appreciable length of time. I had also thought of Canadian residency, and even went as far as getting finger printed for the background check. That, too, fell by the wayside. Now that I’m back, the only reason that I would think of that is if we get another flare up like we did last year. But what comforts me is the fact that I can get a B1 visa very easily if need be. Having been in the US 11 years, and never once having gone out of status makes me a shoe-in for the visa. This was demonstrated earlier this year when I went to get one for my recent visit in May.
I have a friend who was in the process of getting his green card worked on by the company he worked for. After a while he thought about why he was getting it and decided there and then to stop the process, realising for himself that it was not worth it. He then quit his job and moved back here where he’s been in business since then. Last year’s chaos notwithstanding, he doesn’t look like he’s thinking of dumping his Kenyan citizenship any time soon.
I get your point on being able to travel freely and tapping into this wide global world. However, I do believe that if you have something to provide that is very worthwhile to whoever is at the other end, issues related to travel will not be a deterrent. I say this based on the offer I got for the company in Belgium that was very ready to do anything in their power to get me to work for them. I will concede that having a passport from “rich western country” would mean the company wouldn’t have had to do as much, making it more convenient for all involved. But it still doesn’t convince me to dump my Kenyan citizenship. Maybe I’m a sentimental fool, but I definitely do not want to do that. Only when Kenya allows dual citizenship would I be willing to go that route.
egm,
Canadian Citizen is the way to go.. Forget the bungled up Greencard. Who needs a green card when you can get a Canadian passport after holding a PR card for two years.
Can u handle the Winter though ?…. Well I guess you can save that question for when you making your decision.
Egm:
What’s the B1 visa for? just travel or will it also allow you to stay and work?
In terms of citizenshp, everything became much harder after 9/11, but didier is right about Canada: I know someone whose been there 3 years and is already going to get her citizenshp. Living in a place like Toronto can’t be that bad. They speak English, they have socialized medicine, it’s a relatively rich country, it’s not in recession…hmmmm
I was in Brito for 5 years before relocating back in 2000 at age 24. I lived with my folks till 2003 when I moved out but lost my ride and had to move back home in 2004 after my bizna was wiped out by bad debts. Lesson #1: Kenyans will bend over backwards not to pay up. I stayed at my folks till 2008 when I moved out again. This time I owned 2 homes and a small ride and one of my homes is mortgage-free. I’m grateful to my folks for the financial and moral support, and to God for getting me reliable US-based clients that enable me to work from home and skive nasty traffic jams.
Kenyan dude:
What kind of business are you running?
KE: The B1 visa is a tourist visa. It is just for travel. You cannot stay and work. They offer it for just a year, with a 6 month duration of stay stamped in your passport upon entry. So even with that one year visa, you still have to leave the US before the 6 months are up or else you go out of status. Just going over the border into Mexico and back is enough to reset that 6 month clock. Too much work that!
I have a friend who is in the final stages of acquiring his Canadian PR, and another friend who is already switched to Canadian citizenship, so I do know of the benefits.
KD: I hear you completely on Kenyans bending over backwards not to pay you. I now insist on 95% upfront before commencing any work, which covers all my costs and gives me some profit.
Has this insistence reduced the number of clients that you’d normally get? And why 95%? at that point, you might as well ask for full payment. “Ripa bira kura”