(Last Updated On: September 29, 2015)
For as little as Ksh3,000 ordinary Kenyans will soon be able to participate in the lucrative bonds investing without having to to register at the CBK. The National Treasury is planning to float a Ksh5 billion bond from mid October at a rate that is yet to be set by the National Treasury and Central Bank of Kenya. The initiative will be called M-Akiba targeting to help Kenyans save and invest better.
The prospectus will be released earliest October 16 for the paper that will go on sale on October 21.
The minimum amount one can invest is Ksh3000 and a maximum of Ksh140,000 per day until the auction closes. The maximum is set since that is what mobile money transfer are allowed by the Central Bank of Kenya.
So how do you invest in the M-Akiba Treasury Bond via Mpesa or any other mobile money?
You will need to grab your mobile phone and a valid ID card. Then dial *889# then follow the prompts. Treasury will pay you interest you earned every six months through you Mpesa account. The interest rate will be higher than the amount offered by most banks and less than the 91 day treasury bill rate which was at 18.6%.
Your mobile service provider will use your phone number to open an electronic account with CDSC on your behalf.