Kenya could have reaped massive financial gains had part of its Eurobond proceeds been invested in global assets like tech stocks or cryptocurrencies, economic observers note.
Nvidia, the U.S. chipmaker powering the artificial intelligence boom, has seen its stock soar by more than 12,000% since 2015. If Kenya’s first Eurobond issue of $2 billion in 2014 had been invested in the company, the stake would today be worth around $48 billion (KSh 6.2 trillion) at current exchange rates.
Similarly, had just 10% of those Eurobond proceeds been placed into Bitcoin in 2014, when the cryptocurrency traded at around $500, the investment would today be worth trillions of shillings.
While these scenarios are hypothetical, they highlight the power of long-term investing and have reignited debate on the need for Kenya to establish a Sovereign Wealth Fund (SWF). Such funds, common in resource-rich nations like Norway, the United Arab Emirates, and Botswana, invest excess revenues to build national wealth for future generations.
Analysts argue that a Kenyan SWF could shield the country from overdependence on borrowing while positioning it to take advantage of lucrative opportunities. For instance, with multinational Diageo reportedly considering an exit from East African Breweries Limited (EABL), a sovereign fund could step in to secure strategic local ownership in firms often dominated by foreign capital.
Critics, however, say Kenya’s leadership remains focused on short-term borrowing and consumption rather than saving or investing.
“Imagine if we had a law requiring at least 10% of all borrowed funds to be invested through a Sovereign Wealth Fund,” one observer noted. “Future generations would not be burdened by the debts we are now accumulating.”
Economists warn that the cost of Kenya’s failure to invest wisely will be borne by its citizens for decades. Despite its potential to become Africa’s largest economy within a decade, many argue the country’s progress is being held back by greedy, corrupt, and short-sighted leadership.