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Treasury to Tap on Kenyans Abroad for Diaspora Bond

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Treasury intends to tap Kenyans living abroad for a diaspora bond to be issued by the end of next June.

Treasury secretary Henry Rotich disclosed the government had started structuring the debt paper but declined to give details of its size, tenure and return.

“It will be in Kenya shilling and payment of interest is also in the local currency so it does not carry foreign exchange exposures,” said Mr Rotich.

Diaspora remittances to the country have been on the rise hitting Sh110 billion last year. The Kenyan market is offering higher returns than developed markets and could also attract patriots who feel inclined to support infrastructural development in their homeland.

Kenya has in the past marketed infrastructure bonds to citizens living abroad but has not specifically issued a bond targeting the community.

The Treasury is hoping to ride on the success of the recently issued sovereign bond that was oversubscribed nearly fourfold indicating huge investor appetite.

Business Daily