Sharp Daily
No Result
View All Result
Friday, July 11, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Opinion

OPINION: Golden passports spur foreign investment but raise governance concerns

Faith Ndunda by Faith Ndunda
December 11, 2024
in Opinion
Reading Time: 2 mins read

Citizenship by Investment (CBI) programs allow individuals to legally obtain citizenship and a golden passport by investing in the economy of the host country. The golden passport gives immediate citizenship and a passport in the host country. It also allows the holders to travel to several other countries without requiring a visa. The citizenship is permanent and offers full citizenship rights such as voting rights. These programs are a means to attract foreign direct investment and provide economic opportunities. These programs typically require high investments thus are mostly marketed to high net worth individuals.

Investors can invest in real estate, bonds, non-refundable national development funds, corporate equity, bank deposits and non-refundable donations. Individuals investing in real estate and government bonds through CBI are however required to hold the property and bonds for some years before sale. The period depends on the host country. The government bonds are often interest free or low yields with the return for investors being citizenship and its associated benefits.

To obtain CBI one is required to submit required documents and due diligent checks are conducted and then the last step is obtaining approval from the government. The individual is expected to meet the investment requirements. CBI programs offer global mobility through the golden passport. Many CBI countries offer tax advantages such as no or low personal income tax and exemption from capital, wealth and inheritance taxes in some countries. The dual citizenship offers a plan B safeguarding the investor against political instability and economic constraints in the investor’s home country. Or countries with developed infrastructure, they provide the investors with better healthcare and education. CBI allows investors to diversify their portfolios globally.

CBI is mainly offered by European and Caribbean countries. Some of the countries that offer CBI are St. Kitts and Nevis, Dominica, Turkey, Greece, Italy, Cambodia and Austria. Most countries that offer CBI are small, offshore and low income. Many Caribbean countries use CBI to cushion themselves from debt and promote revenue for the country. For instance, CBI revenue contributed 37.0% to Dominica’s Gross Domestic Product (GDP) for the financial year ended June 2023. For the host country, CBI is a job creating avenue. It also provides low cost borrowing to minimize financial burden on the country. The downside of CBI programs is that it provides an avenue for terrorists and other criminals to avoid extradition, taxation and allows them to launder illicit funds. These programs also enable corruption in both the government and client levels.

RELATEDPOSTS

No Content Available

While Kenya does not offer CBI programs there is a residency by investment through Class G Visa. This visa is issued to foreign investors who wish to invest in business or other income generating activities in Kenya. It does not involve direct employment with a Kenyan company. The permit is valid for one or two years and is renewable. Residency by Investment offers close to similar benefits while avoiding the risks involved in CBI. Class G visa has led to increased Foreign Direct Investment in Kenya.

Previous Post

Direct Nairobi-Gatwick flights announced by Kenya Airways for July 2025

Next Post

The economic promise and pitfalls of Kenya’s devolved governance

Faith Ndunda

Faith Ndunda

Related Posts

Business and Finance Concept - Coin, Currency, Financial Item, Graph,
Opinion

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025
Opinion

Privatization in Kenya: A new dawn for capital markets and fiscal stability

July 10, 2025
Economy

What happened to president Ruto’s economic dream?

June 27, 2025
Opinion

Opinion: Populism feeds votes, not growth

June 27, 2025
Opinion

Unlocking the power of REITs: A path for retail investors

June 26, 2025
Opinion

How Kenyan banks can bridge the cybersecurity talent gap

June 25, 2025

LATEST STORIES

Why Employers Should Prioritize Pensions Over One-Time Gratuity Payments

July 10, 2025
Business and Finance Concept - Coin, Currency, Financial Item, Graph,

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025

Privatization in Kenya: A new dawn for capital markets and fiscal stability

July 10, 2025

How Kenya is future-proofing its economy against illicit finance

July 9, 2025

The importance of Investment Policy Statements (IPS) for pension schemes in Kenya

July 4, 2025

Understanding Life Cover as an Additional Benefit in Retirement Benefit Schemes

July 4, 2025

Del Monte foods files for bankruptcy in USA

July 3, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024