M-Akiba’s second tranche launched

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The first tranche of M-Akiba’s Kshs.150 million worth of bonds revealed Kenyans’ appetite for investment in bonds as the offer was exhausted within eight days rather than the targeted ten. It registered 102, 000 investors exceeding the anticipated 50,000. Subsequently, the National Treasury recently launched the second portion of Kshs.1 billion as promised. It will be on sale until July 21st 2017. A remainder of Kshs.3.85 billion was put on hold until a later date depending on the uptake of the second tranche.
The latest offer allows the use of Pesalink, a mobile banking platform run by banks that allows transfer of cash between accounts.“We have learnt good lessons from the past and further enhanced M-Akiba with more ideas for the future. Consequently, I am happy to announce that from today, any Kenyan investor who has registered through their mobile phone and has a bank account will now have the option of transacting usingPesaLink- the internet banking platform – to buy bonds,” said Mr Henry Rotich, the CS Treasury, during the launch.
The Pesalink inclusion allows investors to make bond purchases of up to Kshs. 999,999.  Mr. Rotich further announced that plans are underway to remove the daily cap of Kshs. 140 000 set for mobile transactions. “The Government has also noted existing limitations to the prosperity of every M-Akiba investor who does not hold a bank account. Consequently, we will review the current mobile money limit of Kshs 140,000 per day in the coming months with a view to raising it after a vigorous due diligence process to commence soon. This will expand opportunity for the unbanked to save and make more money by transacting larger amounts through M-Akiba.”
M-Akiba allows a single investor to put in a minimum of Kshs. 3,000 and a maximum Kshs. 1 million, earning tax-free interest of 10 per cent. Investors will be able to trade them on the secondary market at the Nairobi Securities Exchange (NSE) from July 25th 2017.
The sale of bonds via mobile phones is aimed at expandingfinancial inclusion; encouraging a strong savings and investment culture among Kenyans andeasing the path for Kenyans to acquire government bonds.
“We are keeping the promise of financial inclusion for all Kenyans as the government permanently secures Wanjiku’s Bond and her place as an investor in the government bond market,” said Mr Rotich.
M-Akiba is projected to become one of the best savings vehicles ever released in Africa and certainly in Kenya. To this end, the government promised to issue it periodically – either bi-monthly or quarterly depending on the uptake trend and incorporate it into the basket of Treasury infrastructure bonds that are issued periodically. This way, every Infrastructure bond issuance going forward will now include a portion set aside for M-Akiba.

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