M-Akiba Treasury bond, a mobile-based platform where small-scale investors can invest in Kenya government bonds is going live on Thursday.
M-Akiba proceeds will be invested in infrastructure projects in Kenya. However, the deployment of this mobile-first, mobile-only government bonds exchange system will undoubtedly lead to intense cash deposits competition between the government, banks, and SACCOS.
The Central Depository & Settlement Corporation will issue a Ksh. 5 billion 3-year bonds on behalf of the Treasury in tranches. The first tranche will be Ksh. 150 million. The minimum investment amount per investor is set to Ksh. 3,000 and additional amounts can be obtained in multiples of Ksh. 100. Interest will be paid every six months through mobile money services. The Treasury says the remaining Ksh. 4.85 billion will be issued within the second and third quarter of this year.
Investors looking forward to taking part in the M-Akiba investment must be registered mobile users of the two leading mobile service carriers Safaricom and Airtel. The sale of the government bonds via M-Akiba kicks off tomorrow Thursday, March 23rd to April 10th 2017. After that, it will be listed on the …read more