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Government fails to meet M-Akiba target in latest issue

M-Akiba was launched in 2017 and has raised Sh1.045 billion/FILE

NAIROBI, Kenya, Sept 12 – The government has failed to meet its target in the latest M-Akiba Retail infrastructure bond issue, raising Sh263 million against an expectation of Sh500 million.

This is the highest amount raised during the Primary Market Offer.

In a joint statement, National Treasury, the Central Depository and Settlement Corporation (CDSC) and the Nairobi Securities Exchange say the bond attracted an additional 51,461 new accounts bringing the total M-Akiba accounts to 565,725.

The third tranche, dubbed ‘M –Akiba Re-open 3’ was on offer from August 19 and closed on Friday, September 6, 2019.

According to CDSC Chief Executive Rose Mambo, Sh31 million in interest has been paid out to 11,239 investors, brings total amounts paid out in interest payments to Sh.98,560,000 since the first Issuance.

M-Akiba was launched in 2017 and has raised Sh1.045 billion.

“It is exciting for us to see the impressive growth of M-Akiba as we witness it cross the Sh1 billion mark. We continue to honour our promise to our customers by offering them an efficient investment platform; as illustrated by the payouts made to customers on September 9, 2019,” NSE Chief Executive Geoffrey Odundo said.

The government has so far floated offers worth Sh1.65 billion on the M-Akiba bond programme. This includes the Sh150 million pilot offer in March 2017, the debut sale of Sh1 billion in June 2017, and two re-openings of Sh250 million each in February and May.

The mobile bond has its minimum subscription set at Sh3,000, which is meant to make it accessible to ordinary Kenyans. This is in comparison to treasury bills and bonds which require a minimum of Sh50,000.00.

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