Kenya is pioneering several mobile financial solutions. The country which is known for the success of the mobile money, has introduced another innovative solution, but now in fixed-income securities.

The country recently announced that M-AKIBA Bond, the World’s First Mobile-based Government Bond, would be issued this year. Kenyans would have access to purchase this investment through their mobile phones. Apart from saving for their future, they will also finance several ongoing infrastructural projects.

At the mini launch of the special limited offer, Mr. Henry Rotich, the National Treasury Cabinet Secretary, said the unique product was a combination of “capital markets development, resource mobilization and technology”, as developed by his ministry and other stakeholders.

As displayed on the official website, www.treasury.go.ke, “Kenyans can buy bonds from a minimum amount as low as Kshs. 3,000 up to a maximum of Kshs. 140,000 per day. Investors can continue to invest additional amounts in subsequent periods up to the date of closure of the bond issue or when the overall targeted amount of the issue has been achieved”, said Mr. Rotich.

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The National Treasury Cabinet Secretary, Mr. Henry Rotich (Middle), Lands Cabinet Secretary, Prof Jacob Kaimenyi (Left) and Principal Secretary, Dr Kamau Thugge (Right)

To purchase the bond, Kenyans need to open Central Depository Accounts from their mobile phones, without the need to fill physical forms, or visit any bank or broker. The interest payment to investors, which is tax-free, has a higher yield than other investment channels, and would be paid semi-annually to their wallets.

Investors can check their investment statements through their phones, and at maturity, the principal amount will be paid into their mobile wallets.

Photo credit: Kibet Cheptumo/KNA