A screen shot of the M-Akiba mobile traded bond that was launched by Kenya’s National Treasury in 2017. The issuance will now be carried out by the Central bank of Kenya. PHOTO | FILE The latest policy shift is intended to revive the performance of the debt instrument, which was launched in June 2017 to deepen the Treasury bond market and promote financial inclusion.
Under the initial arrangement, the Central Depository and Settlement Corporation (CDSC) was tasked with being an issuing and paying agent for M-Akiba on behalf of the government, while the NSE was in charge of facilitating the online trading of the bonds through its systems as well as providing customer service support through a helpline.
Regionally, the Dar es Salaam Stock Exchange is seeking to engage the Ministry of Finance and Planning for the development of micro-savings products.
Kenya’s National Treasury has shifted the issuance of its mobile-based government bond programme, known as M-Akiba, to the Central Bank, away from the Nairobi Securities Exchange and the Central Depository and Settlement Corporation.
This is after the failure of the initial retail bond due to poor timing, low understanding of the product and weak customer care practices that led to under subscription.
The latest policy shift is intended to revive the performance of the debt instrument, which was launched in June 2017 to deepen the Treasury bond market and promote financial inclusion.
“We want M-Akiba to be spearheaded by our fiscal agent, which is really our intention. We want them to be the primary issuer of this instrument. The Central Bank of Kenya (CBK) has better infrastructure, they have better capability and it sits well in the context of financial inclusion, of which the bank is also supportive,” Haron Sirima, a director-in-charge of public debt management at Treasury, told The EastAfrican in an interview last week.
“We have not abandoned it, but we have learnt a number of lessons. CBK would be the most appropriate entity to speak to as the primary issuer of government securities,” he added. Initial arrangement
Under the initial arrangement, the Central Depository and Settlement Corporation (CDSC) was tasked with being an issuing and paying agent for M-Akiba on behalf of the government, while the NSE was in charge of facilitating the online trading of the bonds through its systems as well as providing customer service support through a helpline.
“M-Akiba was being issued by NSE and CDSC on […]
