Diaspora Bond on Horizon as Kenya Launches Strategic Engagement Plan

The State Department for Diaspora Affairs (SDDA) has unveiled its Strategic Plan for 2023-2027, marking a significant milestone in Kenya's approach to engaging its global diaspora community.

The launch event, attended by high-ranking government officials including Prime Cabinet Secretary Musalia Mudavadi and SDDA Principal Secretary Roselyn Njogu, reiterated the government's commitment to strengthening ties with the estimated 3-4 million Kenyans living abroad. This strategic initiative comes nearly a year after the SDDA's establishment in October 2022, with its mandate substantially expanded under Executive Order No. 2 of 2023. The plan, developed through extensive consultation and guided by the State Department for Economic Planning, aims to address a wide range of diaspora-related issues. It focuses on enhancing diaspora welfare, improving service delivery, facilitating skills exchange, and protecting the rights of Kenyans overseas.

A key aspect of the strategic plan is its emphasis on financial engagement with the diaspora. The government is exploring the launch of a Kenya Diaspora Bond, inspired by India's successful mobilization of over $5 billion through a similar initiative. This bond is envisioned as a mechanism to channel diaspora investments into critical infrastructure projects such as the expansion of Jomo Kenyatta International Airport. The move aligns with the government's recognition of the diaspora as a central pillar in Kenya's socio-economic development. The SDDA has already implemented several programs to support the diaspora, including the Mobile Consular Services outreach program.

Launched in January 2023, this initiative has provided essential services to over 30,000 Kenyans across more than 100 cities in 60 countries. Such efforts have contributed to enhancing diaspora service delivery and boosting confidence in government services. Remittances from the diaspora continue to play a crucial role in Kenya's economy. The SDDA reports that remittances rose from $4.0 billion in 2022 to $4.19 billion in 2023, with projections suggesting they could reach $5 billion by the end of 2024. The government is actively working to reduce remittance costs, aiming to align with Sustainable Development Goal 10(c), which targets lowering these costs to 3% or less.

The strategic plan also addresses broader aspects of diaspora engagement, including promoting continuous dialogue, supporting participation in democratic processes, and facilitating employment and enterprise development opportunities. These initiatives form part of the SDDA's comprehensive mandate to protect and empower Kenyans living abroad. The SDDA is positioning itself at the forefront of progressive diaspora engagement by aligning its diaspora policies with global, regional, and national frameworks such as the UN 2030 Agenda for Sustainable Development.