Buy Treasury bond with as little as sh3000

You can now buy government treasury bonds with as little as sh3000, from the comfort of your mobile phone, a move that will broaden access to one of Kenya’s investment opportunities, especially by low middle incomers.

The government plans to launch the mobile-phone traded M-Akiba tomorrow, 23rd March.

A bond is a loan that any Kenyan can give the government. The government pays back the loan with interest over a period of time specified in the bond issue.

Each bond has a specific objective, either to repay previous loans or infrastructural driven.

Here is what you need to know about participating in the M-Akiba bond

Minimum investment: Sh3, 000 then multiples of Sh100 after the first Sh3, 000

Maximum investment: Sh140, 000

Payment through M-pesa or Airtel Money

The bond will be on sale from 23rd March to 10th April

Interest: 10 per cent per annum will be paid twice a year

Type of bond: three-year tax-free infrastructure bond. The interest you earn will not be taxed

To participate, load your Mpesa or Airtel Money with at least Sh3, 000 and ensure you have some extra money to cater for the cost of buying the bond via mobile money. Then dial *899# from Safaricom or Airtel and follow the instructions.

You will be able to buy the bond any day between 23rd March to 10th April or until the government raises the target amount of Sh150 million. Remember the minimum is Sh3, 000 then amounts over Sh3, 000 in multiples of Sh100 and maximum is Sh140, 000.

Investors, who miss out on buying the bond by 10th April will have the option of buying it in the secondary market at the Nairobi Stock Exchange.

Upon maturity of the bond in March 2020, the principal amount you invested and the interest you have earned from the bond will be paid through your mobile.


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