Kenya’s National Treasury is set to float the first-ever Government Bond exclusively via mobile phone.
Known as M-Akiba, the solution will be delivered in partnership with Safaricom’s M-PESA to continue a push that seeks to deepen access for retail bond trading, which was previously only accessible to commercial banks or traders.
The Treasury recently lowered the cost of government bonds from Kshs. 50,000 to just Kshs. 3,000 and through the mobile-phone based M-Kiba solution, trades can reach an upper limit of Kshs. 140,000 per day until the bond offering period closes.
“In three weeks over 23 million Kenyans will have the potential to participate in a Kshs. 5 billion Government Infrastructure Bond. This historical development is testament of our commitment to embrace innovation to democratize the uptake of government securities,” said Henry Rotich, Cabinet Secretary, National Treasury.
Previously, it took an average of two days to buy a government bond in a process that required customers to apply for a Bond CDS Account, take forms to Central Bank of Kenya, and deposit funds with a broker. M-Akiba however makes the process instantaneous.