Tag Archives: Bond

M-Akiba: Kenya’s new government bonds that are bought by phone

Today saw the launch of M-Akiba, a long awaited product that through which ordinary Kenyans tcan buy government bonds on their phones, using mobile money. The can purchase units as small as Kshs 3,000 (~$30) and earn 10%.

Some tweets about the events today: 

  • The Central Bank of Kenya governor (@njorogep) said  #MAkiba bond is in line with @CBKKenya strategy to increase the level of financial inclusivity in the economy – @NSEKenya   
  • #MAkiba is a collaborative initiative between @NSEKenya @KeTreasury @cdsckenya @SafaricomLtd @AIRTEL_KE @KCBGroup – @NSEKenya
  • Phase One of M-Akiba Runs for 3 weeks targeting Sh150M. Main offer targeting Sh4.85Bn in Q2-Q3 Will run for 3 Months – @kenyanwalstreet
  • M-Akiba bond has so far been Ksh. 535k purchased. I am surprised Kenyans were this interested. So far highest buy is at Ksh. 50k – @MumbiWarui
  • Day One Of M-Akiba; Bonds worth Ksh 1.0 Million Bought Via Mobile Phones In the first 60 Minutes http://kenyanwallstreet.com/m-akiba-retail-bond-goes-live … @kenyanwalstreet
  • To trade #MAkiba bond open a CDS account by dialling *889# either on @SafaricomLtd @AIRTEL_KE .The initial investment per account is 3,000. – @NSEKenya
  • CDSC to manage the register of the bond, offer IPO managements system and the depository and settlement services on behalf of the government – @cdsckenya
  • We have just witnessed the launch of the first M-Akiba bond at the Treasury. It has a coupon rate of 10%p.a.Tradable through the phone.- @JimnahMbaru
  • The #MAkiba bond entry level is kshs 3,000 compared to the current entry point of Ksh 50,000 for any govt securities. @M_AKIBA2017 – @NSEKenya
  • #MAkiba bond is a tax free bond that will attract a 10% interest paid biannually within a period of 3 years @CMAKenya @cdsckenya @CBKKenya – @M_AKIBA2017
  • We are receiving A LOT of transactions per sec. In case of any delays, please just try again. Thank you for the overwhelming response so far – @M_AKIBA2017
  •  UPDATE: Subscription figures- @AIRTEL_KE  Airtel Money -1,300 @SafaricomLtd  MPESA-420 Total collection KES 2.4 million. AS AT 4PM TODAY – @M_AKIBA2017

Some Blogs:  

EDIT

  • M-Akiba is a three year fixed coupon infrastructure “special limited offer” bond
  • Issue number MAB1/2017/3
  • Amount Kshs 150 million (~$1.5 million) issued in March 2017
  • Apply by *889#, and runs from 23 March to 7 April and will be allocated on a first come first served basis
  • Minimum investment is Kshs 3,000, maximum investment is Kshs 140,000 (~$1,400) per day
  • Coupon 10% a year
  • Bond will be listed on the NSE and will be tradable by phone from April 11
  • Trading commission is 0.1% of actual allocations
  • M-akiba interest is tax exempt
  • Pays interest every 6 months: on (2017) 9 Oct, (2018) 9 April, 8 Oct., (2019), 8 April, 7 Oct., (2020) 6 April
  • From a prospectus in a local newspaper.

Notes

‘Akiba’ means  ‘savings’  in Swahili
$1 = Ksh 103