Boosting Economic Stability: How Somalia is Driving Growth in Kenya and Uganda

Somalia’s Impact on Kenya and Uganda’s Economy

In the midst of corruption and insecurity, Somalia’s efforts to stabilize have shown positive results. The country has become a hub for foreigners, with many seeking work or investing in the nation.

Recent reports reveal that remittances from Somalia to Kenya total $180 million and $21 million to Uganda. This showcases the influx of East Africans moving to Somalia for employment opportunities.

Approximately 35,000 Ugandans are currently in Somalia, sending back up to $60,000 daily, while Kenyan remittances reach an estimated $500,000 per day. The neighboring countries of Kenya and Somalia have a strong trade and investment relationship.

Nathan Mugisha, Uganda’s Deputy Head of Mission in Somalia, emphasized the potential in sectors like agriculture, skilled labor, construction, and mining. The mission contributes $50,000 to $60,000 daily in remittances but aims for more significant gains.

Skilled professionals from Kenya are also contributing to Somalia’s workforce, particularly in corporate, humanitarian, and hospitality roles. It is projected that the number of Kenyan workers in Somalia will increase fivefold in the next five years.

Despite not being included in Kenya’s recent Central Bank report on remittances, Somalia is expected to surpass countries like Saudi Arabia in remittance amounts. Both Uganda and Kenya play pivotal roles in Somalia’s security and development.

With Somalia’s integration into the East African Community, allowing for free movement of people within the bloc, the economic ties between Somalia, Kenya, and Uganda are on a positive trajectory.

The collaboration between these nations is essential for the economic growth and stability of the region.

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