The closing bell at the Nairobi Securities Exchange (NSE) was rang at 3:49pm on June 10 during a ceremony to commemorate the secondary listing of the M-Akiba bond.
Although the fourth issue of the M-Akiba retail bond fell below the target of Ksh250 million, NSE Executives seemed buoyant as Deputy Governor of Laikipia John Mwaniki rang the bell.
Hon. Mwaniki was flanked by NSE chief executive Geoffrey Odundo as well as senior leadership from the Central Depository Settlement Corporation (CDSC).
While announcing a 75% uptake for the latest offering of the tranche, the NSE said it felt it had made significant steps in democratising the government bond.
“I think the growth of M-Akiba is bright. In future, more and more Kenyans will take it up,” said Odundo.
The M-Akiba retail bond leverages on increased mobile phone penetration in a bid to enhance financial inclusion.
With a mobile phone, one can invest a minimum of Ksh3,000 (as against the usual minimum of 50,000 on other treasury bills and bonds). The tranche attracts a 10% interest that is tax exempt.
The secondary listing also means that investors can now buy and sell M-Akiba bonds on the NSE.
As of now, M-Akiba investors total over 505,000, with the latest offer attracting 30,232 new investors, CDSC said.
Total money raised by M-Akiba by its fourth offering is now Ksh782 million.
The fourth M-Akiba re-open which ran from May 27 to June 7 was the second one in 2019.
With a target of Ksh250 million, the uptake fell below the mark registering at Ksh187.5 million.
Its previous issue in March had seen Ksh197 million snapped up, representing 79% of the targeted value.
Already, over Ksh60 million has been paid out to investors.
“Since 2017, CDSC has paid out a total of Ksh. 67,162,500/- in interest payments to M-Akiba investors,” CDSC said.
The next M-Akiba re-open is scheduled for July 2019.