The mobile based bond M-Akiba is likely to miss its target a few hours to the close of the offer.
As at the close of trading Thursday, M-Akiba subscriptions were worth Ksh224 million against a target of one billion shillings. This is despite the two month extension.
When it was first launched on a trial basis in March this year, M-Akiba was praised by representatives of the issuer, the government as a revolutionary product which would ensure the exchequer raises money through innovative ways to carry out infrastructure development.
The aim was to issue a government bond through the mobile phone to mainly target retail buyers at the grassroots level who have for a long time been excluded from participating in government securities.
The main bond was launched in June and after a disappointing subscription, the government extended the deadline by two months.
The extension expires Friday at midnight. There had been 12,292 people who had registered for the bond.
Analysts say it is unlikely that subscriptions worth 776 million shillings would be received by the end of the deadline meaning the M-Akiba bond is likely to be under-scribed.
According to analysts, 3yr tenor was proving long for retail buyers, while 10% annual return is much smaller margin for institution buyers.
This is further complicated by ongoing political activities that have led to reduced activities at the bourse.
The interest earned on M-Akiba is tax free paid every six month.