That's the thing... Our bond market is fledgling, but it's traditionally the most reliable source of capital in any nation... For both corporates and governments... The US has been able to finance slightly more than twice it's GDP through bonds (imprudent as it is, I'm just illustrating the potential of the same). Given that Kenya is the largest economy, doesn't it make more sense to position Kenya as the defacto investment destination of choice for banks/corporates/governments in the region that have excess capital? We won't need to go to the world bank as we will be able to finance our own operations largely... if insurance companies in .ug/South Sudan/Rwanda etc invest in said bonds, we can raise VC funds through a similar manner with pension funds/mutual funds etc investing in the funds... Really EA has enough capital lying idle for us to keep borrowing from the World Bank/IMF etc... Really the problem is our structure... If we can fix that we will win the battle. 

On Tue, Jun 28, 2011 at 5:14 PM, <ashok+skunkworks@parliaments.info> wrote:


On Mon, Jun 27, 2011 at 11:57 AM, Phares Kariuki <pkariuki@gmail.com> wrote:
I know I may be fanning the Aki fire with this, but sincerely, why are we so dependent on FDI? Can't we shore up our own capital reserves? It's unfortunate that our bond market is yet to pick up but it's one of the best solutions for this IMO... Where do companies store their cash at hand? Bonds would offer a better store of value at the same time allowing for fund raising for investing in local ventures/projects... 


most companies i believe send their money overseas ...  the only bond market that exists in Kenya is mainly for treasury bonds ... corporate bonds you probably need some kind of independent risk assesment body for credit ...does such a thing exist ?

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With Regards,

Phares Kariuki

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