M-Akiba Post Issuance Survey
This National Treasury led market development initiative to distribute government securities through mobile phones is one of the most innovative globally. Although the first pilot and launch did not achieve the desired outcome, the survey aims to enhance and guide the subsequent issuances of M-Akiba.
FSD Africa identified M-AKIBA as an opportunity to learn about an innovative tool which could enable the broadening and deepening of inclusive financial markets. The study identified successes and challenges that M-Akiba experienced.
This innovative bond aims to broaden the sources of borrowing beyond banks and other financial institutions to retail investors. The minimum subscription is less than $30 with an interest rate of 10% disbursed every six months over mobile money, at a three-year tenor.
The survey highlights the possibility for replication of this pilot issuance and explores other possible approaches for the mass distribution of securities.
The product was developed by the government in collaboration with Nairobi Securities Exchange (NSE), the Central Depository Settlement Corporation (CDSC), Mobile Network Operators (MNO), and the Kenya Association of Stockbrokers & Investment Banks (KASIB).
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