You can now buy Kenyan Government bonds through mobile phone using a new mobile platform M-akiba launched by the ministry of finance through the Central Bank of Kenya (CBK) .
What is M-Akiba?
M-Akiba is a Government of Kenya issued retail bond that seeks to enhance financial inclusion for economic development. It is a product by the government of Kenya through the Central Bank of Kenya (CBK) under the National Treasury in collaboration with Nairobi Securities Exchange (NSE), Central Depository Settlement Corporation (CDSC), Safaricom, Airtel and Kenya Association of Stock Brokers & Investment Banks (KASIB).
How to register and invest in M-AKiba through Safaricom line
Follow the following procedure;
- To invest in M-Akiba, dial USSD Code *889# in your safaricom line
- Enter Your pin (input zero to set new pin)
- Then Enter your national ID number
- After entering your National ID number, you will then be prompted to register by dialing 1
- Read the Terms and Conditions and click yes if you are in agreement
- You will receive a confirmation message indication that you registration was successful
- The confirmation message will have your M-Akiba Account Number, Your Name and the activation time & date of your M-Akiba Account.
- To continue trading, dial *889# on your line and follow the prompts.
Requirements to Buy M-Akiba Bond
- You need to have a mobile phone (a simple phone will be okay)
- You need to have registered your mobile number with Airtel or Mpesa Mobile Money
- You need to open an M-Akiba CDS Account (this is Free!)
How to sell M-Akiba bonds
To sell, Dial *889# and choose the “sell” option then follow instructions to complete your sell order. You may sell part or the total investment you had made.
What you need to know about M-Akiba
What is M-Akiba Retail Bond?
The M-Akiba Bond is a special Retail Bond that has been issued by the Government of Kenya to raise money to fund its’ infrastructural projects
When will the Government pay you back your money?
The maturity period of this Special Bond is three (3) years; meaning that you will be paid back your initial investment amount called the “principal” after three years, plus any accrued interest for the last six months.
What is the interest rate for the M-Akiba Bond?
The interest rate for this bond is 10% per year and it is fixed.
Who can buy the Bond?
All Kenyan citizens can buy the Bond using their mobile phones.
Is there a limit on how much I can buy per day?
Yes with M-Akiba, the limits shall be according to allowed maximum transaction amounts by the Mobile Network Operators; currently it is Kshs.140,000 per investor per day.
Can I sell my bond before the end of the three year period?
Yes. You can sell your bond after closure of the initial sale period through the Nairobi Securities Exchange.
How do I earn/make money from M-Akiba bond?
As an investor you will be paid 5% of your total investment after every six months for the next three years. This is more than you receive from most other saving products.
How long does it take from the time I buy/sell to get a confirmation message?
The process takes place in real time. You may however experience some delays depending on the network coverage in your area.
Benefits of investing in M-Akiba Retail Bond?
- M-Akiba Bond is a low risk savings/investments
- It is affordable
- It is a sure source of income from the interest earned after every six month
- Agreed upon returns in form of interest paid –semi annually
- There is no taxation on the bond
- Liquidity as one can sell when need arises
- A way of saving money for the future
- Convenient and confidential
- You can transact Anywhere, Anytime within the Republic of Kenya
- No need for a bank account, you use mobile money
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