Pesalink fails to live to hype

The much touted entry of PesaLink to transact M-Akiba’s billions of shillings is yet to leave up to the hype. This is after Treasury collected only Sh23.2 million as at the close of last week’s trading posing doubt if the government will reach its target.

The entry of PesaLink was seen as a game changer and meant to increase the amount a single investor could bid. From Sh140,000 a day, and investor could now bid to as much as Sh1 million per transaction.

“PesaLink, M-Akiba subscribers will continue to enjoy tariff free subscriptions as part of our launch offer. Normal PesaLink charges shall apply after August 12,2017,” reckoned Integrated Payment Services Limited Chief Executive Officer Jennifer Theuri.

KBA Chief Executive Habil Olaka said 90 per cent of bank customers have already signed up to PesaLink with 26 banks already on board, while the remaining 16 are awaiting approvals. Rolled out in mid-February on pilot phase, the facility attracted more than Sh2.5 billion capital in the four months to June.

However, only six banks have signed up with PesaLink window hoping to capitalise on the Sh1 billion offer with a Sh3.8 billion green shoe on offer to net any extra cash. “As of today, six banks have made changes to allow for M-Akiba purchases via PesaLink,” Treasury said on Friday last week.

Commercial Bank of Africa, Prime Bank, Guardian Bank, Jamii Bora, Credit Bank and Middle East Bank have all established the link to trade the affordable bond. 

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