(Bloomberg) -- Kenya’s planned sale of a diaspora bond may fund key infrastructure projects including the proposed expansion of the nation’s busiest airport, according to Prime Cabinet Secretary Musalia Mudavadi.
The proceeds can “be harnessed into supporting infrastructure development” such as an upgrade of Jomo Kenyatta International Airport, Mudavadi said in a statement on Monday.
An unsolicited bid by Indian billionaire Gautam Adani to develop the airfield in the Kenyan capital, Nairobi, sparked protests and lawsuits, and has been put on hold by a Kenyan court. Kenyans opposed to the deal argue the $1.85 billion proposed investment is too meager and the concessions attached to the deal are too deep.
“We can mobilize diaspora resources, to partner with other private sector resources and actually fund this piece of infrastructure,” Mudavadi said.
Kenya is weighing expanding key infrastructure at a time when neighboring states are plowing billions of dollars into new projects as they jostle to dominate the lucrative market for regional transport.
Mudavadi said he “regretted” that JKIA is being “left behind” as other major airports in Africa are being expanded and upgraded.
“The truth is that if you went to West Africa today, whether you are landing in Ghana, Togo or you went to Addis or Rwanda, their airports have overtaken Jomo Kenyatta International Airport,” he said.
Issuance of diaspora bond were revived this month after being put on hold
Kenyans living abroad may have increased appetite for investing in domestic assets, with remittances growing to $2.8 billion in the first seven months of this year, compared with $2.4 billion a year earlier, Mudavadi said.
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