Treasury targets to raise Ksh 250m through M-Akiba bond

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The National Treasury is yet again targeting to raise 250 million shillings through mobile based M-Akiba infrastructure bond.

The M-Akiba re-open 2 of May will be opened to public until next month with tenure of one year and three months, and a maturity date set for September 2020.

The last two M- Akiba bond issue have been underwhelming with the government missing its targets after a 21 per cent under subscription.

During the second offer of the bond the government had hoped to raise Kshs 250 million but only managed to raise Kshs 197 million representing a 75 per cent subscription rate.

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Not deterred by the two issues the National Treasury, the Central Depository and Settlement Corporation and the Nairobi Securities Exchange, have jointly re-opened the M-Akiba Retail Infrastructure Bond Issue to offer Kenyans another opportunity to invest in the Government infrastructure Bond.

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M-Akiba which re-opens on 2nd of May seeks to raise Kshs 250 million and is scheduled to run from 27th May to June 7, 2019.

According to Treasury the value date shall be on June 10th, 2019 and will start trading at the NSE on, June 11, 2019.

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The tenure for the bond will be one year and three months, with maturity date set for September 7, 2020. CDSC Chief Executive Rose Mambo noted that the corporation has put in place robust systems that will ensure seamless settlement of transactions.

She says, “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”.

On his part the NSE Chief Executive Geoffrey Odundo noted, “The growth in the bond is a testament of its ability to enhance financial inclusion in line with the NSE strategic objective and the Capital Markets Master Plan 2014 – 2023”.

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Since inception the bond has attracted over 450 M-Akiba bond investors, raising close to 600 million shillings.

M-Akiba seeks to enhance financial inclusion through leveraging on increased mobile phone penetration to democratize access to formal financial systems for savings and investments with Kenyans now able to participate in government bonds with as low as 3,000 shillings.

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