CBK’s Sh36bn infrastructure bond targets diaspora

The Kenya diaspora this year has averaged $66 million in monthly remittances and overall has overtaken tourism as the most important source of foreign currency, with substantial improvement expected over the $641 million total recorded last year.

“The increase in remittances in 2011 reflects economic recovery in source markets, and a favourable domestic economic environment,” says Charles Koori, the director of research at the CBK.

Apart from the diaspora, foreigners are expected to invest in the infrastructure bonds due to various incentives, boosting the flagging Shilling apart from contributing to de-bottlenecking Kenya infrastructure.

“Foreign investors usually participate because there is no withholding and capital gain taxes on the issues,” said Mr Mweni. Past issues have all been fully subscribed.

mwahome@ke.nationmedia.com