The sluggish M-Akiba bond sale was extended for 52 days on July 22 after only 14.08 per cent (Sh140 million) was snapped up within the initial sale period of between June 30 and July 21.
CMA boss Paul Muthaura said appetite for the bond was hit by wrong timing.
The success of M-Akiba could open up opportunities for companies to also raise cash from the mass market.
The Capital Markets Authority (CMA) expects investment in the Sh1 billion mobile-based Treasury bond to pick up after Tuesday’s hotly contested presidential polls.
The sluggish sale of the three-year retail infrastructure bond was extended for 52 days on July 22 after only 14.08 per cent (Sh140 million) was snapped up within the initial sale period of between June 30 and July 21.
CMA chief executive Paul Muthaura said appetite for the bond, which offers a 10 per cent return payable after every six months, was hit by wrong timing.
“There were some questions over whether the gross majority of wananchi (citizens) had free and accessible cash to participate given the timing of the month. But (also there was) caution that comes with investment activities around the election period,” Mr Muthaura said.
“The National Treasury decide to extend the offer period so that we can analyse its performance based on normal market conditions and not around the elections and end-of the month…sensitivities.”
New investment in the bond, where minimum denomination is Sh3,000, rose Sh20.6 million since the extension by 8:40pm on Wednesday, the Treasury said in an update.
There were 8,182 new registrations for the bond through Safaricom’s #ticker:SCOM M-Pesa, AirtelMoney and interbank money transfer platform PesaLink by Wednesday following the extension, bringing the total registered investors to 261,249.
Mr Muthaura said the success of M-Akiba, the world’s first bond sale via mobile phone, could open up opportunities for companies to also raise cash from the mass market.
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