By OPCS Press Service
Prime Cabinet Secretary Musalia Mudavadi has said Kenya is now ready for a Diaspora bond to fund large infrastructural projects, such as constructing a new airport at Jomo Kenyatta International Airport (JKIA).
Mudavadi noted that the government could raise up to Sh500 billion from the Diaspora bond, which could fund a complete overhaul of the international airport at approximately Sh300 billion, with another Sh200 billion allocated to other significant infrastructural projects.
Speaking during Diaspora Day at KICC, Mudavadi said the Diaspora bond had been utilised successfully by other countries for their national projects and emphasised that it was time for Kenya to adopt the same approach for its cost-intensive initiatives.
“With Sh500 billion that we can raise from the Diaspora, we can either build a new airport at Sh260 billion to about Sh300 billion, or we can decide to expand a dual road to connect with Uganda or even extend the Standard Gauge Railways (SGR),” said Mudavadi.
The Prime Cabinet Secretary noted that the Indian Diaspora bond was oversubscribed by $5 billion a few years ago, and Israel had raised up to $50 billion over time to build its economy.
Mudavadi also disclosed that the government was working on the Diaspora bond with technical support from the World Bank’s Multilateral Investment Guarantee Agency (MIGA).
“This instrument will offer Kenyans abroad a secure investment while diversifying the source of financing for government projects. While providing a competitive return on investment, the bond will help Kenya to systematically move away from costly foreign loans to support its infrastructure and other capital development projects,” said Mudavadi.
Additionally, as Cabinet Secretary for Foreign and Diaspora Affairs, Mudavadi stated that the government’s focus on the Diaspora was informed by their growing contribution to Kenya’s socio-economic development, mainly through remittances, investment, and knowledge transfer.
“In the first 10 months of this year, remittances increased to a record $4 billion (over Sh520 billion), which is a remarkable increase of 17.8 percent compared to the $3.46 billion received during the same period in 2023,” said Mudavadi.
The Prime Cabinet Secretary highlighted that the growth in remittances cemented their position as Kenya’s largest foreign exchange earner, exceeding the combined earnings from coffee, tea, horticulture, and tourism. He projected that remittances could grow to Sh1 trillion by 2027.
Mudavadi also addressed the perception among Kenyan youth regarding President Ruto’s international travels, stating that the success of Diaspora remittances should clarify the importance of such engagements.
“Kenya does not live in isolation; we must always engage with the rest of the world. By 2027, we are even projecting a rise to Sh1 trillion in Diaspora remittances. This money has and will continue to help us stabilise the value of the shilling. The remittances, alongside government interventions, have already brought the dollar down from Sh169 to now Sh129,” said Mudavadi.
He acknowledged the sacrifices of Kenyans abroad who diligently send money home, directly impacting sectors such as education, healthcare, small business enterprises, housing, gender equality, rural development, and poverty alleviation.
“We can enhance this contribution, particularly if we reduce the cost of remitting money from an average of six percent to the Sustainable Development Goals target of three percent. I wish to assure you that the government will work with all stakeholders to align with the SDG’s universal value of ‘Leave No One Behind.’ Our primary goal is to achieve inclusivity and deepen access to affordable digital remittance and financial services,” he said.
Another key focus of government engagement with the Diaspora, Mudavadi said, is knowledge and skills transfer, enabling the country to benefit from initiatives that support the Bottom-Up Economic Transformation Agenda priorities and Kenya Vision 2030.
The Prime Cabinet Secretary further stated that President William Ruto’s administration was implementing the Global Labour Market Strategy to secure quality job placements for Kenyans abroad. This includes deliberate efforts to engage other countries through bilateral labour agreements and MOUs to expand opportunities, particularly for the youth.
“As we do this, we are committed to enhancing our capacity to offer timely and effective consular services, ensuring the rights of every Kenyan outside our borders are protected. I can confirm our readiness to do exactly this. The State Department for Diaspora Affairs has officers on call 24/7 to address Kenyan Diaspora issues and concerns,” said Mudavadi.
Dr Roseline Njogu, Principal Secretary for the State Department for Diaspora Affairs, stated that there are over four million Kenyans in the Diaspora and emphasised their commitment to increasing this number.
“Our interest is to ensure that we have more Kenyans across the world and that they are safe, going about their lives knowing that the government cares for every Kenyan life,” said Ms Njogu.
