Musalia Mudavadi, Kenya’s Cabinet Secretary for Foreign and Diaspora Affairs, has suggested a groundbreaking idea for improving the country’s infrastructure: leveraging the financial power of the Kenyan diaspora. According to Mudavadi, the creation of a Diaspora Infrastructure Bond could offer a viable solution to funding major infrastructure projects, including the construction of a new airport in Kenya.
In a recent statement, Mudavadi emphasized the potential of the Diaspora Infrastructure Bond to drive significant development in the country. “If we explore this bond properly, we can unlock immense development,” he noted. He believes that the bond could be instrumental not only in funding a new airport but also in advancing other critical infrastructure projects such as road construction, railway extensions, and improvements in the healthcare sector.
The proposed bond, which Mudavadi suggests could be carefully packaged and well-supported, is seen as a means of tapping into the vast financial resources held by Kenyans living abroad. Initial estimates indicate that with proper management, the bond could raise over Sh500 billion, far surpassing the Sh300 billion originally required for infrastructure projects. This would give the Kenyan diaspora a central role in financing transformative projects, potentially revolutionizing the country’s infrastructure landscape.
One of the most pressing needs in Kenya’s aviation sector is the expansion of Jomo Kenyatta International Airport (JKIA). Currently, the airport is undergoing plans to enhance its capacity, including the expansion of runways and aircraft parking bays. These upgrades are necessary to reduce congestion and improve safety for both incoming and outgoing flights. By 2040, JKIA is expected to expand its parking bays from the current nine to 21, with cargo throughput projections reaching 741,000 tonnes.
JKIA, which handles 80% of Kenya’s network passengers and 90% of the cargo, is a critical hub for the country’s aviation sector. The airport’s design capacity allows it to process up to 35 aircraft per hour, but with the increasing demand for air travel, expansion is key to maintaining smooth operations. The proposed development would help meet the growing needs of both passengers and cargo, making the airport even more competitive within Africa’s bustling aviation industry.
In addition to physical expansion, JKIA is also looking to enhance its services for high-end travelers. In early 2024, the airport’s general manager, Selina Gor, announced plans to launch a special terminal dedicated to VIPs, such as CEOs of major global corporations. This move aligns with Kenya’s ambition to become a more attractive destination for international business and tourism.
The government is also taking steps to solidify Kenya’s role in the regional and global aviation sectors. In June 2024, the Cabinet approved the National Aviation Policy, aimed at maximizing the contribution of the aviation sector to Kenya’s overall growth. This policy includes measures to ensure consistency with international standards, address legal and regulatory issues, and meet stakeholder expectations.
As Kenya works to expand and modernize its aviation infrastructure, Mudavadi’s call for a Diaspora Infrastructure Bond could be a game-changer. By tapping into the financial potential of Kenyans living abroad, the country could not only fund the construction of a new airport but also fuel broader development projects, ultimately improving the nation’s connectivity and economic growth.
With Kenya’s aviation sector on the cusp of significant transformation, the idea of a Diaspora Infrastructure Bond could pave the way for a future where infrastructure is built with the support of the global Kenyan community. This could be a win-win for both the diaspora and the nation, creating lasting connections and opportunities for progress.
