![[Kenya] Treasury re-opens M-Akiba retail infrastructure bond](Images/Key Industry Images/stock-exchange.jpg)
[Kenya] Treasury re-opens M-Akiba retail infrastructure bond
The National Treasury (TNT), the Central Depository and Settlement Corporation (CDSC) and the Nairobi Securities Exchange (NSE) have jointly re-opened the M-Akiba Retail Infrastructure Bond Issue No 2/2017/03 re-open one of March 2019.
This tranche seeks to raise Ksh.250, 000,000.00 (two hundred and fifty million Kenyan Shillings) against the Ksh. 1,000,000,000.00 (one billion Kenyan Shillings) target. The offer will be open for ten days from February 25, 2019 to March 8, 2019 after which it will be listed on the NSE for secondary trading on March 12, 2019.
The tenure for this bond will be one and a half years, with a redemption date of September 7, 2020. CDSC Chief Executive, Ms. Rose Mambo confirmed the depository’s commitment to perform their role as the issuing and paying agent for the bond, “During the offer period, CDSC will facilitate the creation of CDS accounts, processing of applications in the primary market, and shall offer registry services as a sub-register to the Central Bank of Kenya. During the secondary market, CDSC shall continue to facilitate the settlement of M-Akiba transactions traded on the NSE and shall manage coupon payments and redemption of the bond at maturity.”
M-Akiba retail bond seeks to deepen and enhance financial inclusion through leveraging on increased mobile phone penetration to democratize access to formal financial systems for savings and investments. More Kenyans are now able to participate in Government bonds by investing a minimum Ksh. 3,000.00 which is considerably lower in comparison to the minimum Ksh.50,000.00 required to invest in other Treasury bills and bonds.
Since inception, the bond has attracted over 300,000 new investors onto the bond platform underscoring the bond’s potential to revolutionize access to capital market products. Speaking during the launch, the NSE Chief Executive, Mr. Geoffrey Odundo noted, “This initiative underpins our commitment to grow local retail participation in our bond market in line with our corporate strategy. M-Akiba is a low risk investment product that offers investors a steady source of income and an effective way of saving for the future. The bond offers simplicity, convenience as well as great value to Kenyans across a wide spectrum of the economy.”
Commenting on the re-opening, the Capital Markets Authority Chief Executive, Mr. Paul Muthaura noted, “The M-Akiba initiative is well aligned to the Capital Markets masterplan 2014-2023 which identifies technological innovations as one of the four centers of excellence of the Kenyan capital markets.”This reopening will enable Kenyans enjoy a high return of 10% interest within the duration of one and a half years, tax exempt, proving to be very competitive against other investment instr uments.
