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The government has unveiled intentions to launch a dollar-denominated bond aimed at attracting investment from Kenyans living abroad.
In a statement, Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi revealed that the Diaspora Bond would be developed in collaboration with the World Bank’s Multilateral Investment Guarantee Agency (MIGA) and the National Treasury.
“We are in the process of establishing a secure bond that will offer more favorable returns compared to interest rates in the countries where our diaspora resides. This bond will allow the government to vary its public debt portfolio, thereby reducing our reliance on expensive commercial debt,” Mudavadi stated after discussions with MIGA’s Executive Vice President, Hiroshi Matano.
Remittances from the Diaspora.
MIGA estimates that Kenyans abroad send back over $4.3 billion annually to Kenya, and their savings in foreign financial institutions could be similar or even greater.
Mudavadi, who recently concluded a three-day visit to the United States, also engaged in discussions with Scott Nathan, the Chief Executive Officer of the Development Finance Corporation (DFC), regarding potential investments to support the government’s economic and social transformation agenda.
The US Development Finance institution, which provides financial assistance and investment guarantees, is collaborating with the National Treasury on initiatives promoting climate-friendly practices such as smart agriculture, clean energy, and electric vehicles.
Another meeting between Mudavadi and Ms. Chidi Blyden, Deputy Chief Executive Officer of the Millennium Challenge Corporation (MCC), centered on accelerating the implementation of a transformative urban mobility and growth initiative benefiting commuters in Nairobi County.
The climate-friendly urban connectivity project, funded by a $60 million MCC grant, includes the establishment of a Bus Rapid Transit (BRT) network, bicycle lanes, pedestrian pathways, as well as crossways and overpasses. Additionally, it aims to enhance connectivity between matatu stops and the emerging commuter rail network while promoting the mobility of women in urban areas.
MCC, an independent US government agency, entered into a threshold program agreement with the National Treasury in New York in September 2023.
