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Government to promote savings culture and financial deepening by issuing a new M-Akiba bond to Kenyan Households.

Kenyan government through its Ministry The National Treasury, is planning to issue a new M-Akiba bond to the market.

This is after finalizing payment of the principle and interest of its second issue that investors bought in 2017.

The Central Depository and Settlement Corporation (CDSC) which is contracted by The National Treasury to issue the Government Infrastructure Bond and also as a paying agent, has paid out the final principle amount of Sh.891 million and an interest of Sh44 million to investors.

A total of 13,592 retail investors subscribed to the second issue.

Since its first issue in June 2017, The Central Depository and Settlement Corporation (CDSC) has managed to register a total of 582,572 M-Akiba investors.

According to the subscription data from The Central Depository and Settlement Corporation (CDSC), 68% of Kenyans took up bonds worth between Kshs.3,000-20,000, while 24% of the investors bought bonds worth between Kshs.20,001-100,000, and the remaining 8% invested above Kshs.100,000.

See Also: Why you must have an Emergency Fund to make sure you’re ready for a Financial Emergency.

Kenyan investors or households who are looking for alternative ways to invest or save money for future use or retirement can consider M-Akiba.

The retail infrastructure bond is an attractive investment vehicle and savings product convenient for every Kenyan.

The M-Akiba bond is tax-free with a good return on investment of 10% per year. Although the interest is calculated annually, the returns are payable semi-annually after every 6 months.

It is relatively moderate to all Kenyans. With only Kshs.3,000 as the minimum investment, people can invest to earn interest and grow their money.

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The retail infrastructure bond is a Mobile Traded Bond. all the processes relating to registration, trading, settlement is done through a mobile platform.

With the help of mobile penetration among Kenyans homes, many households can take advantage of the retail infrastructure bond to save money, while at the same time earning very attractive interest rates from the Government.

M-Akiba also provides an opportunity to access to the financial product or instruments sold at the Capital markets that was previously beyond the reach of many Kenyans.

It’s a Very convenient financial product to buy and sell as everything is done using your phone.

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