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Diaspora University Town Bank Development Plan

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(From Left) Bishop Donald Mwawasi, Advocate Gregory Omusolo and Dan Kamau (From Left) Bishop Donald Mwawasi, Advocate Gregory Omusolo and Dan Kamau

Diaspora Kenyans and Kenyans through filling Expression of Interest for the investment are on track to start what will become the Diaspora University Town Bank. In a meeting held at the Law firm of Omusolo and Mungai advocates in Nairobi; Advocate Gregory Omusolo, Bishop Donald Mwawasi, Rose Ndiritu and Dan Kamau reviewed the plan for creation of the bank. Advocate Gregory Omusolo, a specialist in banking and finance law, will facilitate the creation and implementation of the plan. The bank development plan is currently progressing as two options: start a new financial institution or invest in an existing financial institution.

The Bank development plan makes the Diaspora University Town project have seven main development plans as follows: Town, University, Medical Hospital, Bank, Vaccine-Medicine Production Plant, Tourism, and 500 SMEs (Small Medium Enterprises). 

The bank development plan is tailored to offer Diaspora Capital an opportunity to be productive and make the highest return possible as Diaspora money contributes to the growth of Kenya Gross Domestic Product (GDP). The GDP of Kenya is currently estimated at $80 billion. If Vision 2030 is achieved, the GDP of Kenya would grow to $600 billion by year 2030.    

Kenya banking sector grew from Kshs 1 trillion deposits in 2009 to about Kshs 3 trillion deposits by 2017. By 2022 the bank deposits are expected to grow to about Kshs 6.5 trillion. The loan advances will also grow to about Kshs 5 trillion. The bank development plan will be part of the banking and financial market growth during the period to 2022.   

According to the DUT development and GDP growth plan, if the bank development plan grows to have a market share of 2% of the Kshs 6 trillion deposits, about Kshs 120 billion, by the end of 2022; the return on invest for every shilling or dollar invested could achieve a return as high as 80% every year. This means every dollar invested in the plan growing to become $20 by 2022.  

The bank development plan will facilitate Diaspora with innovative financial services and products that enable them be part of the growing Kenya economy. In the last 25 years the Diaspora Remittances have contributed about Kshs 1 trillion to the Kshs 3 trillion bank deposits growth. By 2022, the Diaspora remittances are expected to add another Kshs 1 trillion in the Kenya bank deposits growth as this growth reaches Kshs 6.5 trillion.  

The bank development plan as part of the Diaspora University Town will be integrated to the jobs, property development and SMEs growth. 

Jobs

The bank development plan will facilitate the 20,000 jobs creation at the micro finance level. Those getting jobs will be able to also have financial accounts, services and products that will enable them progress their living standards. Diaspora understand how important it is to have access to banking services and also receive microfinance as one kick-off their working careers. 

Property Developers

The bank development plan will create investment products that will enable Diaspora be part of the property development opportunity in Kenya. Diaspora University Town houses developers will be able to put in their capital and in doing so access financing as they become developers of residential and commercial property.      

SMEs

The bank development plan will also create financing opportunity for Diaspora and Kenyans who look to be part of the 500 SMEs (Small and Medium Enterprises) at the Diaspora University Town and elsewhere in Kenya. The Diaspora will look to advance production of products in Kenya and in doing so reduce the percentage of Balance of Trade (BOT) as a factor of Kenya Gross Domestic Product (GDP).

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