kenya:M-Akiba mobile bond set to kick off

Kenyans will now invest in the lucrative bond market through their mobile phones after yesterday’s announcement M-Akiba will be rolled out in the next financial year.

Treasury had delayed the launch of the mobile phone-based bond, months after President Uhuru Kenyatta assented to a law guiding the sale of the Sh5 billion mini-securities because of  unfavourable market. Cabinet secretary Henry Rotich said Treasury will strengthen primary and secondary markets for government securities.

“This will include introducing electronic bond auctions which will spare investors from the current manual process of submitting paper bids, separating the retail and wholesale components of the market, introducing primary dealers and market makers and establishing an efficient horizontal repo market,” he said.

The M-Akiba bond was to be sold at minimum denominations of Sh3,000 through the mobile money platforms.

SOURCE:MEDIAMAXNETWORK