M-Akiba investors earn Sh45m

National Treasury yesterday paid Sh44.5 million as interest to investors of M-Akiba, a retail infrastructure bond.

About 13,494 million investors that had bought into the second issue of Treasury’s mobile-based bond will pocket the cash.

After the first issue flopped, M-Akiba was reopened in mid-2018 with the Exchequer raising Sh263 million, short of the targeted Sh500 million. It is these investors who will be pocketing the interest.

A year earlier, in 2017, the first issue saw the Government, through the Central Depository and Settlement Corporation (CDSC), raise Sh247 million. It had targeted to get Sh1 billion from the infrastructure bond.

The latest payment follows the last payout in October 2019 for M-Akiba 1 investors and in September 2019 for M-Akiba 2 Investors totalling Sh7.50 million and Sh31.40 million respectively.

“To date, a total of Sh150.60 million has been paid out in interest to all M-Akiba investors and Sh1 billion raised from the five bond issuances since 2017,” said CDSC Chief Executive Nkoregamba Mwebesa (pictured).

“CDSC continues to fulfil its mandate by facilitating the settlement of M-Akiba transactions traded on the Nairobi Securities Exchange and managing coupon payments and redemption of the bond at maturity.”

The redemption date for the M-Akiba 1 Bond falls on April 6, 2020. Investors in this note will receive their principal amount invested and final interest payout on this date. Subsequently, M-Akiba 2 Bond Investors will receive their final interest payout and the principal amount.

M-Akiba is largely a savings vehicle, with the Government hoping that its uptake will help mobilise savings among Kenyans. M-Akiba was a three-year bond sold in low denominations of Sh3,000 with a coupon rate of 10 per cent paid semi-annually. It is tax-free