Kenyans have raised Sh117.6 million through the purchase of the first ever mobile phone-based M-Akiba bond.
This translates to an overwhelming uptake of 78.5 per cent of the Sh150 million that the National Treasury had targeted to raise between March 23, when the sale of the M-Akiba bond opened, and April 10 when it closes.
Data from Treasury shows that as of mid-morning, there were 92,739 investors that had registered on the M-Akiba platform.
The tax-free M-Akiba bond aims at promoting a savings and investment culture by Kenyans with a minimum investment amount of Sh3,000 and a maximum investment amount of Sh140,000 per day.
The Government is testing the waters with the current offer as it targets a larger bond that is expected to raise Sh4.85 billion mid this year.
The funds, according to Treasury Cabinet Secretary Henry Rotich, will be invested in infrastructure projects.
“This new savings innovation is the first of its kind in the world, and to give it the full weight it deserves, the President will launch the main M-Akiba bond with an offer of Sh4.85 billion in June 2017,” Rotich told Parliament last week when he delivered the budget statement for the 2017/18 financial year.
The mobile phone-based way of lending to the Government is opening up to retail investors what has previously been a preserve of a few investors that new their way around the market and could also mobilise a relatively huge amount of money at a go.