After almost two years of constant delay, the Kenyan Government will finally launch the M-Akiba Mobile, the very first of its kind worldwide, to retail bonds from Thursday 23rd March.
The service is intended to be a mobile platform to which everyone with access to M-pesa or Airtel Money can invest in tax-free infrastructure bonds in real time, from the comfort of their homes. From the launch date, there will be an initial target of Ksh 150 million at a fixed coupon rate of 10%. Interest of the three-year bond will then be paid twice a year until April 2020.
The daily trades on M-Akiba will be limited from a minimum of Ksh. 3,000 a day until the bond offering period ends on April 10. These prices enable more Kenyans than ever before to take part in capitalizing on these bonds, cutting down the former minimum investment amount reaching Ksh. 50,000, which was unattainable for most people.
Previously, the majority of those who would partake in government bonds were institutional entities, while many Kenyans who may have wanted to participate could not due to the high investment requirements. Now with M-Akiba, more individuals will be able to contribute in raising funds for nation building.
Investors can participate by dialling *889# and follow the instructions to complete an order.
- M-Akiba is a Kenyan Government issued retail bond.
- It’s a mobile traded bond and all activities relating to registration, trading, settlement will be via a mobile platform.
- The bonds can be bought via M-pesa and Airtel Money
- The target Amount is Ksh. 150 million
- Investors will be required to subscribe for a minimum of Ksh. 3,000 and multiples of Ksh. 100 thereafter.
- Tenure of Bond is 3 years.
- The bond is tax-free as provided for under the Income Tax Act.