Treasury cs Henry Rotich/FILE
BY NAMULONGO PETER,NAIROBI,23RD MARCH 2017-The government has made history by being the first country in the world to offer a government bond traded exclusively through a mobile handset.
The M-Akiba bond which has been launched today will debut at the capital markets as a special limited offer from today with a target of 150 million. The offer will then run for three weeks after which the foremost M akiba offer w a target of sh. 4.85 billion running for three months will be launched.
In total, the M akiba bond is targeted to raise 5 billion shillings through the capital markets.
Speaking during the launch,Thursday treasury cs Henry Rotich has said that the bond has redefined how to increase financial inclusion among the unbanked populace, increase the level of democratization at the bond market by allowing both low income earners and high net worth individuals to trade in government bonds and spur the country’s saving culture.
The bond will be traded by any Kenyan citizen with a mobile handset that is registered for mobile money payment services either with safaricom or airtel, with the bond retailing at a minimum of 3000 shillings per transaction for a maximum of 140,000 a day. The tax free bond will attract a 10 percent interest paid biannually within a period of three years after which it will mature.