The first time Kenya’s treasury offered bonds via M-Akiba back in 2017 under-performed terribly, the bond-sale wasn’t as successful as expected with a total sale of Ksh 247.47 million instead of expected KSh1 billion due to poor public awareness; three years later in 2019, M-Akiba is here with us again and it’s a matter of a few weeks till you have a chance to invest using your phone. According to Nairobi Securities Exchange (NSE) head of enterprise innovation Mr. David Waggema, the three-year bond will be reintroduced, allowing people to invest with an impressive return on investment of 10 percent tax free interest.
At the time when M-Akiba was first introduced in 2017, the country was already pre-occupied with upcoming 2017 general elections leading to lack of awareness by most Kenyans; however, this time round, Mr Waggema indicated they’ll be doing public education before it goes on sale. 10 percent tax free return on investment is ahead of the prevailing yield curve for similar tenured government paper.
How to Subscribe and Start Investing in M-Akiba
Before we dive into M-Akiba’s investment world, first here is what you need to know;
- Unless you’re a Kenyan citizen who has attained the age of 18 years and above, you’re not allowed to participate in M-Akiba bond sale, and yes this includes teenagers who are busy building their future in schools or own a phone.
- You must have a mobile money enabled phone; if you’ve got MPESA or Airtel Money activated on your device, then you are good to go.
- The mobile based bond is guaranteed by the Government of Kenya.
To start investing, follow below procedure;
- First, you’ll need to enroll to M-Akiba by dialing a USSD Code *889# on your phone
- A pop up will appear on your phone requiring you to enter your preferred Personal Identification Number (PIN). Set your preferred PIN then press OK to proceed. This will be the default PIN for your transactions, therefore you’re advised to keep it a secret. However, if you need to reset of forgotten, press 0 and follow the prompts to set a new PIN.
- Enter Your National Identity Number
- Register to Participate in M-Akiba, after entering your National ID number, you will then be prompted to register by dialing 1.
- Accept the terms & conditions of M-Akiba by pressing 1 for YES.
- If successful, you will receive notification from your mobile service provider confirming of your successful submission.
- The confirmation message will have your M-Akiba Account Number, Your Name and the activation time & date of your M-Akiba Account. To proceed with trading, dial *889# on your phone and follow the prompts.