The government has urged Kenyans in the diaspora to invest in the country’s infrastructure development.
Prime Cabinet Secretary and Foreign and Diaspora Affairs CS Musalia Mudavadi on Thursday challenged the diaspora to organize themselves and take up some of the projects the government is undertaking.
Mudavadi spoke during the launch of the Kenya Diaspora Policy 2024 in Nairobi.
He said that in 2022, the remittances were about $4 billion, and that by the end of 2024 they had hit $4.95 billion, surpassing earnings in tea, coffee and tourism. The amounts had a huge impact in stabilizing the country’s economy, he said.
The PCS said they are discussing with the Treasury and other players about the bonds, so that the government can harness the diaspora resources more meaningfully.
“For instance, the JKIA. We package it well, and have a prospectus that makes a lot of sense, the diaspora can finance and build a new airport,” Mudavadi said.
He added that the diaspora could also participate in Public-Private Partnerships in road construction.
“If we want to remain the main artery into the East African Community northern corridor, we can work out an arrangement where the diaspora can do a proper dual-carriageway, some sections tolled so there is some return, all the way to0 Kenya-Uganda border in Malaba and open up the economy of the region and give it more impetus,” Mudavadi added.
The terminated Adani deal had proposed a $2 billion proposal by the Adani Group to lease JKIA for 30 years, a period they would modernise and run it.
President William Ruto in December announced plans to commence the construction of a dual carriageway along the Nairobi-Nakuru-Malaba road this year.
“We had a PPP programme with a French company, but it didn’t materialize. However, we have another alternative. The commitment I want to give you is that next year, we will begin constructing the dual carriageway from Nairobi to Malaba.
“We are in discussions with various companies to ensure this project eases congestion and enhances transport capability,” Ruto said.
The decision followed recurrent severe traffic congestion experienced as Kenyans travel upcountry.
The government is exploring alternative sources of financing infrastructure due to limited finances at its disposal.
National Treasury CS John Mbadi last year proposed use of pension funds to fund capital intensive projects.
Mbadi directed the formation of a team of experts to explore the possibility of the government using the option.
Mbadi told the third Annual Meeting for the Public Service Superannuation Fund that the team would provide a pathway from reliance on external investors and debt in financing the national budget.
DIASPORA CONTRIBUTION
The Kenya Diaspora Policy 2024 states that the government recognizes the “invaluable contribution” of the Kenyan diaspora to the socio-economic development of the country.
“Kenyans living abroad are an important source of financial, intellectual, and social capital. Therefore, the government is committed to safeguarding their rights, welfare, and interests as well as ensuring their active participation in national development efforts while providing them with necessary support and protection,” the policy, which revises the 2014 document, says.
It adds that the government is committed to promoting continued dialogue with the diaspora as an integral part of the country’s national development.
“The Kenyan diaspora is a valuable asset for the nation, comprising a diverse community of migrant workers, entrepreneurs, investors and cultural ambassadors residing abroad. The diaspora community continues to feel left out in socio-economic development of the country in various aspects.
“This has led to mistrust between the diaspora and the government. As a result, the government intends to engage the Kenyan Diaspora in a more constructive and productive manner to unlock their full potential,” the policy says.
As part of its implementation framework, the policy provides that the National Treasury will support the formulation of Diaspora Bonds and investment opportunities in the financial sector.
County government will, through the Council of Governors, ensure Kenyans abroad participate in development at the devolved units.
Diaspora PS Roseline Njogu noted that the diaspora are key stakeholders in the built environment as they have invested heavily in real estate in the country.
