Kenya has made a name for itself to be an innovator and pioneer in the FinTech space. It is the first country where widespread use of mobile money began, at a time when the rest of the world was just starting to define what the term means. A revolution spearheaded by Safaricom’s M-Pesa mobile money transfer services.
Come March 23rd through April 10th this year, Kenya made another innovation within the FinTech space of issuing government bonds to small-scale investors through the mobile phones. Traditionally, as it is the case in most countries, investors who took part in the purchase of government bonds were those with deep pockets. The investment has always been lucrative given the almost guaranteed payback of the principal amount plus an additional 10% interest.
However, small-scale investors were technically locked out by the fact that the minimum amount a single investor could invest was Ksh. 100,000 and Ksh. 50,000 for Treasury Bills and Government Bonds respectively. Only a handful of Kenyans had such money(s) lying around, and if they did, they probably had not enough information to take part in capital …read more
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