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Kenya: govt to launch mobile investment solution

Kenya , 15 Jun 2015

Kenya: govt to launch mobile investment solution

The Kenyan government plans to launch a mobile service that will enable citizens to buy government bonds and securities directly from their devices.

Called M-Akiba, the solution aims to give Kenyans the best options for investment.

We are "developing the treasury mobile direct programme which we expect to launch in July 2015. The launch of M-Akiba bond will allow Kenyans to purchase government securities directly from the comfort of their mobile phones with a minimum investment of only Kshs 3,000 (US$31) compared to the current minimum of Kshs 50,000 (US$530)," Henry Rotich, the Cabinet Secretary for Treasury said while reading the 2015/2016 budget in Kenya.

"This will allow Kenyans to enjoy significantly higher interest rates on government securities compared to the bank deposits through a convenient platform with low entry threshold," he added.

The government has not yet stipulated if the service will be available as an application or a USSD platform.

Plans to roll out the service began in 2012 with the Central Bank of Kenya collaborating with the World Bank to unveil the roadmap for its launch.

In their plans, "Potential investors will only need a mobile phone line and a subscription to a mobile money service, which will enable telecoms operators open an electronic account with the Central Securities Depository (CDSC) or CBK on their behalf."

The aim of this service is to help the government engage individuals who want to invest in government debt and thereby increase the capital base for the government.

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