NAIROBI (Xinhua) --
Kenya plans to use its mobile government
bond, M-Akiba to boost the savings rate among its
citizens, a senior government official said on Tuesday.
Secretary in the National Treasury Henry Rotich told a
media briefing in Nairobi that the country’s saving rate
currently stands at 12 percent of the Gross Domestic
Product (GDP) compared to 25 percent in the developed
which is an exclusively mobile phone traded bond, is
undoubtedly one of the most powerful savings vehicles
for Kenyans given that it provides an annual rate of
return of ten percent tax free of the amount invested,”
entry point of 30 U.S. dollars as compared to the
current minimum of 500 dollars to trade in any
government security is aimed at ensuring that as many
Kenyans as possible save through participating in the
bond,” he said during the occasion of ringing the bell
at the Nairobi Security Exchange to mark the start of
the secondary trading of the special limited offer of
tha 1.5 million dollar M-Akiba.
the east African nation launched the 1.5 million dollar
bond which has already been fully subscribed.
In June, the
government will launch the main 48.5 million dollar M-Akiba
bond program. Rotich said that Kenya’s capital markets
are currently dominated by institutional and foreign
“So, the M-Akiba
is expected to encourage a strong savings culture by
giving retail investors access to a gold standard
investment opportunity that has always been beyond
their reach,” he added.