Diaspora bonds to help Kenyan government

The Kenyan government has come up with a diaspora bond that will help it to increase the amount of remittances to the development projects and act as a source of cheap credit to the government. Considering the fact that a large amount of the remittances is spent on direct consumption and not on long term investments and savings, this move is expected to play a big role in the development of the country.


The World Bank in recent times has been promoting efforts like these to help the African countries to set up financial institutions. The bonds in Kenya are expected to be set up later in the year. The idea is to develop a financial instrument that would enable the Central Bank to use remittances as collateral bond issues and loan securitisation.


No other African country, except Ghana has issued a diaspora bond. The diaspora bonds are considered viable opportunity for repatriating Africa’s flight capital, estimated at more than $170 bn by the World Bank.


Tags: , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: