The Kenyan government has made a big step towards improving its infrastructure and consequentially taken a big leap for technological improvement with the newest plans to sell bonds via mobile phones. The Kenyan Government’s National Treasury plans to release government infrastructural bonds that is well worth Ksh5 billion and this would only be available for purchase via mobile phones.
Considering the time-consuming nature of the previous process involved in sourcing for these bonds where customers would have to apply for a Bond CDS account and then take appropriate forms and documents to the Central Bank of Kenya after which a broker is paid, the government has partnered up with M-Akiba platform which would make the purchase of bonds almost, if not, instantaneous.
To further increase the accessibility of the bonds to customers, the National Treasury of Kenya further reduced the cost at which the government-issued bonds are released from a Ksh50,000 value to a low Ksh3,000, the reduction being more than 90% of its original price. There is also the laudable improvement that has seen the government increase the upper trading limit to Ksh140,000 daily.
The introduction of the bonds through mobile phone technology is believed to help more Kenyans appreciate and have access to the bonds and also to create an easy access, eradicating the normally tedious processes involved. Possession of a valid ID Card being the pass for an interested customer, *889# should be dialed and the voice prompt would walk the user through the process.
Upon maturity, principal amounts and payments would be made through M-Pesa (M for Mobile, and Pesa is Swahili for Money).