NAIROBI, Kenya, Mar 22 – Kenya’s long awaited mobile based bonds auction platform dubbed M- AKIBA is set to be launched on Thursday.
The move will open an opportunity for any Kenyan to lend to the government with small amounts of cash with a minimum of Sh3000 ($30) at a tax-free interest of 10 per cent.
The interest will be payable every six months.
Kenya is expected to float Sh150 million bond in the first trache and another Sh4.84 billion in the second and third quarter of the year.
The bond is open to all mobile users registered with Safaricom and Airtel
The three-year bond — modelled as infrastructure bond — will be the first in the world to be sold on a mobile money platform.
Bond buyers currently pay a minimum of Sh50,000 or Sh100,000 for infrastructure bonds, locking out many Kenyans from accessing the market.
The Central Depository & Settlement Corporation (CDSC) will be the selling agent for the M-Akiba bond, unlike other bonds that are issued by the government through the CBK.