Hon Musalia Mudavadi. Photo/Courtesy
By Daisy Okiring
Kenya is preparing to issue a diaspora bond targeting citizens living and working abroad as part of wider efforts to ease public debt and strengthen the country’s infrastructure agenda.
The announcement was made by Prime Cabinet Secretary Musalia Mudavadi, who revealed that the government had already opened talks with the World Bank to structure the bond and make it attractive to investors. The bond is expected to raise between $250 million (Ksh 32.3 billion) and $500 million (Ksh 65 billion), with projections of mobilizing a further $3.8 billion (Ksh 491 billion) in diaspora investments in the coming years.
Focus on Infrastructure Development
According to Mudavadi, proceeds from the bond will be channeled into key sectors, particularly energy and transport, which are critical to Kenya’s long-term growth. He highlighted projects such as rural electrification, road expansion, rail, and aviation infrastructure as priority areas.
“The conversation will be around infrastructure acceleration—be it electrification, roads, rail, or air transport,” Mudavadi stated, adding that the initiative will be instrumental in catalyzing Kenya’s economic transformation.
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The bond comes at a time when the government is seeking fresh financing options to address a rising debt burden while still funding essential projects. Over the past two years, the high cost of living and unemployment have fueled nationwide protests, underscoring the urgency of sustainable economic strategies.
Search for Alternative Financing
Mudavadi also revealed that the government is exploring other avenues, including privatization of state-owned assets, securitization, and public-private partnerships. He noted that these alternatives are intended to reduce reliance on direct taxation, which has previously triggered
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