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The National Treasury CS Henry Rotich when he attended the launch of the bond/COURTESY


Treasury extends M-Akiba offer after falling far short of targeted Sh1 billion

The National Treasury CS Henry Rotich when he attended the launch of the bond/COURTESY

NAIROBI, Kenya, Jul 22 – Treasury has extended the second phase of the M-Akiba bond sale to September 11, as the sale fails to take off.

The sale that closed on Friday only raised Sh140 million bought by about 235,672 against a target of Sh1 billion that was on offer.

The government had also left the door open to raising Sh3.5 billion should there have been demand.

According to the Treasury, there has been a strong surge in the bond’s uptake in these last three days of the offer.

“It is only right that these investors are given the opportunity to participate,” says Wohoro Ndohho Director General Debt Management Department at the National Treasury.

To ensure that all investors who bought the bond to the date of July 21 are not disadvantaged by this extension, Ndohho says any interest accruing to them over the extension period will be paid on a pro rata basis.

Kenyans are buying the bond on mobile money (Airtel Money and M-Pesa) or via the inter-bank transfer platform PesaLink for a low as Sh3, 000 with a daily transaction limit of Sh140,000.

Investors will be paid 10 per cent interest every six months, beginning January next year.

The revolutionary M-Akiba Bond is meant to open government securities trading to the lower income group.

After two years of testing, and crafting and back and forth, the National Treasury launched the M-Akiba bond in March 2017.

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The inaugural mobile infrastructure bond closed after the entire Sh150 million on offer was taken up by investors 13 days after the Treasury bond was issued.

About 5,000 people bought the government paper for as little as Sh3, 000, causing the mobile system to freeze during the initial days.

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