Kenya’s treasury is set to roll out another M-Akiba offering in the market despite the initial one only managing to attract only 5,988 of the 303,534 investors who had registered.
M-Akiba is a Government of Kenya issued retail bond that seeks to enhance financial inclusion for economic development. Money raised from issuance of the mobile –based infrastructure bond was expected to infrastructural development projects, both new and on-going.
The first offering helped treasury raise Sh247.75 million, which is 24.78 per cent of their target.
Investors had been invited to bids of up to Sh3.8 billion for the bond whose minimum investment is Sh3,000. The latter is unlike other conventional offerings whose minimum value is Sh50, 000.
The Business Daily reports that Treasury secretary Henry Rotich blames prolonged political uncertainty for the 25 per cent subscription of the Sh1 billion offering, which was on sale between June 30 and September 11.
“By and large, we saw a lot of people registering, but they did not take it up partly because people were busy with electioneering period and investment was not so much a focus. The timing was another issue and we should have done this probably after elections,” said Mr Rotich.
“But it is a continuous product and we will continue to come to market because Kenyans now know it more.”
The three-year retail bond offers a return of 10 per cent payable after every six months.