The final payout of 935.9 million shillings from the Central Depository and Settlement Corporation (CDSC) to investors in the mobile-traded government bond, M-Akiba has been made in a statement released by the corporation.
According to the corporation, the payment made includes 44.6 million shillings in interest and 891.4 million shillings in principal amounts paid to 13,592 investors. The government of Kenya through the NationalTreasury guarantees the bond.
The M-Akiba bond was launched by the National Treasury in 2017. Since its launch, a total of 312.4 million shillings has been paid out as interest to M-Akiba investors. So far, the Bond has flooded five issues which raised 1 billion shillings in proceeds to the National Treasury.
It was first issued on 30 June 2017, after a successful pilot phase launch of M-Akiba 1 on 23 March 2017. “The M-Akiba retail bond seeks to deepen and enhance financial inclusion through leveraging on increased mobile phone penetration to democratize access to formal financial systems for savings and investments,” said the corporation.
The M-Akiba bond is open to Kenya’s citizens who have attained the legal adult age of 18 years and are in possession of mobile money enabled phone.
The M-Akiba bond retails at a minimum of 3,000 shillings to a maximum of 140, 000 shillings a day. The nature of the bond attracts a 10 percent interest which will only be paid twice a year (tax-free) for a period of three years after which it matures.
“The purpose of floating the M-Akiba bond is to finance Government development expenditure / budgetary support,” said the National Treasury.
The M-Akiba bond is open to Kenya’s citizens who are in possession of mobile money enabled phone in this case Safaricom’s M-Pesa or Airtel’s Airtel Money, a duly registered line and a valid National Identity card.