Kenya is turning to its citizens abroad to raise funds for public projects, with plans to issue a diaspora bond worth between $250 million and $500 million as it looks for ways to relieve pressure on its strained finances.
The government aims to mobilise as much as $3.8 billion through the programme, according to Prime Cabinet Secretary Musalia Mudavadi.
Discussions are underway with a World Bank unit on how the bond will be structured, with proceeds expected to finance projects such as rural electrification, roads, railways, and airports, Bloomberg reported.
Kenya is also preparing to host an International Monetary Fund mission next month to negotiate a new lending programme.
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The country has struggled with fiscal challenges since being forced to scrap proposed tax increases in 2024 following nationwide protests that left at least 60 people dead.
The unrest triggered heavy economic losses, with the Nairobi Securities Exchange PLC (NSE) reporting a $600 million drop in investor wealth in just two weeks.
To stabilise its finances while limiting the burden on households, the government is pursuing privatisations, public-private partnerships, and asset securitisation to fund infrastructure projects.
“Because of the backlash from citizens, we shifted our focus toward alternative financing rather than aggressive revenue-raising measures,” Mudavadi said.
“We are working to live within our means, recognising the global economic challenges,” he added.
Mudavadi also noted that Kenya has taken steps toward being removed from the Financial Action Task Force’s “grey list,” but did not give a timeline.
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Image Credit: Eastleigh Voice
