1. What is a bond? 7.

When will the Government pay me back my

A bond is a loan between a borrower and a lender. The money?
borrower promises to pay the lender interest after every The maturity period of this Bond is three (3) years; meaning
six months at a future date. The borrower also promises that you will be paid back your initial investment amount
to repay the initial money given by the lender at the end called the “principal” after three years in addition to the
of the agreed period. annual interest payments you will receive throughout the
three year period.
A bond is usually longer than one year; it is issued by the
borrower to raise money for a particular purpose. 8. What is the interest rate for the M-Akiba
Bond?
2. What is M-Akiba Retail Bond? The interest rate for this bond is 10% per year and it is
The M-Akiba Bond is a Retail Bond that has been issued fixed.
by the Government of Kenya to raise money to fund
infrastructural projects. 9. How frequently do I get paid my interest?
The interest will be payable twice in a year (every six
3. How do I buy the M-Akiba bond? months) for the next three years.
There are two channels you may use to buy M-Akiba;
through your Mobile Money or through Pesalink. 10. What are the benefits of investing in M-Akiba
• Load your Mobile money account with at least Retail Bond?
Kshs.3,000; ensure you factor in the transaction • M-Akiba Bond is a low risk savings/investment
costs. Dial *889# and follow instructions. product as it is backed by the financial
• For PesaLink, ensure you are registered for M-Akiba. might of the government
To register, dial *889# and follow instructions. Use • It is affordable at only 3,000/-
your preferred bank PesaLink channel, select PesaLink • It is a steady source of interest income paid every
option, choose send money to phone option. Type six months
889 as the phone number, enter amount of bond • The interest income is tax free. That is, no taxes are
you wish to purchase. Under reason for payment/ paid on it whatsoever
narration, enter your ID number then submit. • You have a guaranteed exit option. That is, you can
• You will receive an SMS confirmation from PesaLink sell the bond from anywhere within normal trading
and your respective bank hours (9.00am -3.00pm)
• You will also receive a confirmation message from • It is an effective way of saving money for the futures it
CDSC confirming your buy. earns a strong return
You are now on your way to saving with the M-Akiba • Very convenient to acquire and dispose given it is all
Bond. mobile based.
• It is confidential and secure
4. What is the minimum amount of bond I can • You can transact from anywhere and at anytime.
buy during the offer period?
The minimum amount of the Bond an investor can buy per 11. Who can buy the Bond?
transaction is Kshs.3,000 worth of the bond. Thereafter, Any Kenyan citizen with a mobile phone and mobile
one can buy in the multiples of Kshs.500.00 per day until money can buy the Bond.
the full amount on offer is exhausted.
12. How different is the M-AKiba Bond from
There are no restrictions as to how much an investor shall the other bonds previously issued by the
buy in the secondary market. Government?
Its minimum investment amount is 3,000/- compared
5. Is there a limit on how much I can buy per to the 50,000/- minimum amount expected of investors
day? buying the other bonds. M-Akiba is therefore very
If you choose to use the mobile money payment channel, affordable.
daily allowable limits of Kshs.140,000 per investor per It is also the first bond to be traded through the Mobile
day shall apply. However, if you use Pesalink, maximum phone.
transaction limit is Kshs. 999,999 per transaction. Daily
transfer limit is depended on your bank account balance. 13. Why should I buy the M-Akiba bond?
Other than being one of the most attractive savings
6. What is the total amount of money the products available to the average Kenyan with a good
Government is aiming to raise from the return on investment of 10% per year, it also gives you
M-Akiba Retail Bond? access to a gold standard capital market financial product
The Government is looking at borrowing 5 billion Kenya that was previously beyond the reach of most Kenyans.
shillings through the M-Akiba Bond. The Government You participate in nation building directly as the bond’s
raised a total of 150 million in the “Special Limited funds are put to developing the nation’s infrastructure thus
Offer” which was sold out and closed two days earlier. boosting economic growth and the future prosperity of
Kenyans everywhere.
14. What do I require to buy the Bond? have used PesaLink payment channel, their money will be
• You need to have a mobile phone (a simple phone credited into their bank account. The amount you receive
will be okay) will include any accrued interest earned but will be less
• You need to have registered your mobile number with the mobile money/PesaLink charges and statutory levies.
Airtel or Mpesa Mobile Money
• You need to register with Pesalink, use your preferred 23. What happens to my interest after I sell my
PesaLink bank channel and follow instructions. Bond before the interest payment date?
• You need to open an M-Akiba CDS Account (this is Interest is earned on daily basis hence you will not lose
Free!) your interest if you sell before the next payment period.
Accrued interest up and until the date of sale shall be
15. Do I have to open another CDS account if I paid to the seller immediately upon sale. Owing to the
already have one? Mobile money charges and statutory levies it is advisable
Yes. Your CDS account for M-Akiba will be different from to sell the bond after day 60 from the bond value date.
the normal CDS account that you hold today. After this date, you will be able to get your full initial
investment; however, to enjoy the maximum return from
16. How do I open an M-Akiba CDS Account? the M-Akiba bond, it is highly recommended to hold the
Once you have registered your mobile number for bond to maturity.
Mobile Money (Airtel or Mpesa), Dial *889# and follow
the instructions. You will receive an SMS confirmation 24. Can I Buy the Bond after close of the offer?
message with your M-Akiba CDS Account number. Yes. You can buy the bond in the secondary market
(Nairobi Securities Exchange). All you need to do is Dial
17. How can I continue to buy if I want to buy *889#, choose the “buy” option and follow instructions
more than the maximum amount per day? to complete your buy order.
You will wait for the next day to do your transaction. You Ensure you have enough money in your mobile wallet for
can repeat this daily until you reach the amount you wish the amount of bond you wish to purchase. Transaction
to invest for as so long as the bond is still available for costs shall apply. You can also use Pesalink to purchase
sale. the bond, (Please refer to the second bullet in question
3 for steps)
18. What will it cost me to buy the M-Akiba Bond
during the offer period (primary market)? 25. How long does it take from the time I buy/sell
During the offer period the cost of buying M-Akiba bond to get a confirmation message?
will be the respective MNO charges (see discounted
MNO Charges on the M-Akiba website- www.m-akiba. The process takes place in real time. You may however
go.ke. There no charges when you buy using PesaLink experience some delays depending on the network
by August 12 2017, after which charges shall apply. coverage in your area.
Charges may vary from bank to bank.
26. How can I track my investment?
19. What will it cost me to sell or buy the bond Simply dial *889# and go to the “My Account” menu,
after the offer period (secondary market)? you will be able to view your statement.
Total cost for secondary buy and sell is 0.335% of the
value of the transaction. Normal mobile money and 27. How different is M-Akiba from other savings
Pesalink transfer charges shall apply to load or withdraw options available in the market?
money from your mobile wallet. To view a detailed M-Akiba is a savings product which has been introduced
M-Akiba Costs and Returns Sheet log on to www.m- by the Government of Kenya to encourage a Savings
akiba.go.ke. Culture amongst its Citizens. The return is guaranteed at
an attractive rate of 10% per year.
20. How do I earn/make money from M-Akiba 28. Who is a Stockbroker?
bond? A stockbroker is a licensed entity by the Capital Markets
As an investor you will be paid 10% of your total Authority (CMA) which buys and sells securities like
investment per year, for the next three years. The interest bonds on behalf of investors.
is payable after every six months. This is a competitive
return when compared to her saving products. 29. How do I get to know my Stockbroker?
Once you buy the bond after registering, you will
21. Can I sell my bond before the end of the three automatically be allocated a stockbroker. Additionally,
year period? you will receive notification SMS with your stockbroker’s
Yes. You can sell your bond after closure of the initial sale name. The stockbroker may be different from your usual
period through the Nairobi Securities Exchange. stockbroker for your other securities.
To sell, Dial *889# and choose the “sell” option then
follow instructions to complete your sell order. You may 30. What if I forget my Stockbroker?
sell part or the total investment you had made. To know your broker, dial *889#, go to “my account”
Your ability to sell at will is guaranteed through a liquidity and follow instructions.
arrangement with a bank that will ensure you are paid
your sale money between 9:00 a.m. and 3:00 p.m. 31. Whom do I contact incase I have any queries
during week days excluding holidays. related to the M-Akiba Bond?
You can contact the visit the nearest Huduma Centre.
22. How do I get my money when I sell my Note that we have changed our contact numbers from
M-Akiba Bond? 0900889000 to 0206900020. Email us on info@m-
When you sell your bond you will receive your money akiba.go.ke or visit our website on www.m-akiba.go.ke.
immediately in your mobile money. For those who will