The government has announced plans to introduce a dollar bond targeting Kenyans in the diaspora.
In a statement, Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi said the Diaspora Bond will be structured by the World Bank’s Multilateral Investment Guarantee Agency (MIGA) and the National Treasury.
“We are working on a secure bond that will offer better returns than interest rates in the source markets for our diaspora remittances. The bond will enable the Government to diversify its public debt mix, reducing our exposure to costly commercial debt,” Mudavadi said, following discussions with MIGA’s Executive Vice President, Hiroshi Matano.
Diaspora remittances
MIGA estimates that while Kenyans abroad remit over $4.3 billion back home annually, their savings in foreign banks could be similar or even more.
Mudavadi, who concluded a three-day visit to the US, also held talks with Scott Nathan, the Chief Executive Officer of the Development Finance Corporation (DFC), on potential investments for enhancing the government’s economic and social transformation agenda.
The US Development Finance institution, which provides finance and investment guarantees, is also working with the National Treasury on climate-friendly initiatives including 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), focused on how to expedite the implementation of a transformative urban mobility and growth initiative that will benefit commuters in Nairobi County.
The climate-friendly urban connectivity project, funded by a $60 million MCC grant, includes the development of a Bus Rapid Transit (BRT) network, bicycle lanes and pedestrian pathways, crossways and overpasses.
It will also facilitate connectivity of matatu stops to the emerging commuter rail network and promote the mobility of women in urban areas.
MCC, an independent US government agency, signed a threshold program agreement with the National Treasury in New York in September 2023.
By Francis Muli
Source-https://www.pd.co.ke/business
Kenya Gov’t to Introduce Dollar Bond Targeting Diaspora Investors
