Kenyans In Diaspora to Raise Ksh 500B for Ruto Govt in New Bond Scheme
President William Ruto is considering the possibility of tapping into the approximately Ksh690 billion that Kenyans have deposited in international banks worldwide through the introduction of a Diaspora Bond.
In a statement released on Sunday, Musalia Mudavadi, the Cabinet Secretary for Foreign Affairs, clarified that the upcoming bond, to be denominated in US Dollars, will provide an opportunity for Kenyan citizens to invest in the government of Kenya.
He additionally disclosed that the arrangement of the bond will be organized through the collaboration of the Multilateral Investment Guarantee Agency (MIGA) of the World Bank and the National Treasury of Kenya.
The disclosure occurred following Mudavadi’s encounter with Hiroshi Matano, the Executive Vice President of MIGA, while he was on his tour in the United States.
“We are working on a secure bond that will offer better returns than interest rates in the source markets for our Diaspora remittances,” The CS stated.
“The bond will enable the Government to diversify its public debt mix, reducing our exposure to costly commercial debt.”
MIGA suggested that based on recent data, Kenyans may have accumulated savings of Ksh690 million in overseas banks, as the figures align with the annual remittances of a comparable amount flowing back into Kenya.
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A diaspora bond refers to a bond that is issued externally to Kenya, with its principal and interest payments conducted in US Dollars.
The latest initiative indicates Ruto’s commitment to investigating alternative means of financing his government, following his decision to decline a $1 billion syndicated loan from the Trade and Development Bank (TDB), amounting to Ksh161 billion.
During that period, the leader of the country asserted that his government no longer relied on the bank to fulfill the loan agreement previously established in October 2023.
He called for the reform of Multilateral Development Banks while simultaneously advocating for an augmentation in concessional loans, coinciding with his rejection.
In the middle of January, the Central Bank additionally disclosed its plan to conduct an auction for infrastructure bonds worth Ksh70 billion in support of its Diaspora Bond initiatives.
Kenyans In Diaspora to Raise Ksh 500B for Ruto Govt in New Bond Scheme
