Govt launches Sh1 billion M-Akiba mobile-based bond in second offer

What you need to know:

The government had earlier this year traded the first phase of the M-Akiba bond during which it sought to raise Sh150 million.
Kenyans could only buy the initial bond via mobile money which has a daily transaction limit of Sh140,000.
The inclusion of PesaLink option in this second phase raises the maximum amount that investors can put in to Sh999,999 per day.

The Treasury has launched the Sh1 billion second phase of the mobile phone-based retail bond M-Akiba.

The government has, however, left the door open to raise Sh3.85 billion more money through M-Akiba should there be demand.

Kenyans will be able to buy the bond on mobile money (Airtel Money and M-Pesa) or via the inter-bank transfer platform PesaLink.

READ: All you need to know about M-Akiba bond

The government had earlier this year traded the first phase of the M-Akiba bond during which it sought to raise Sh150 million.

Kenyans could only buy the initial bond via mobile money, which has a daily transaction limit of Sh140,000.

READ: M-Akiba resumes trading at the NSE

The inclusion of PesaLink option in this second phase raises the maximum amount that investors can put in to Sh999,999 per day.

On Friday, National Treasury Cabinet Secretary Henry Rotich promised to raise the Sh140,000 M-Pesa daily limits to allow more buys from those without bank accounts.

The bond will close on July 21 with secondary trading on the Nairobi Securities Exchange #ticker:NSE slated to begin on July 25. It will mature in 3 years.

Investors will be paid interest every six months, beginning January next year, at a rate of 10 per cent.