April 30, 2008: Kenya is to launch a diaspora bond to help it direct the increasing amount of remittances to development projects and act as a source of cheaper credit to the Government.
Concern abounds that a significant amount of remittances sent by the diaspora is used for direct consumption without getting into long term investment and savings, diminishing the money’s impact on the development of the country.
The World Bank [through its Mobilizing the African Diaspora for Development Initiative] is leading efforts to offer Kenya and several other African countries setting up financial instruments of their choice to tap into remittances. Its final roll out report will be released in June and the setting up of bonds across several countries is expected later in the year.
Read more: Steve Mbogo, Business Daily Africa, 30 Apr 2008