`MOBILE BOND

Technical hitch delays M-Akiba cash to investors

M-Akiba 2 was first issued on June 30 2017 after a successful pilot phase launch of M-Akiba 1 on March 23, 2017.

In Summary
  • The hitch has since been resolved, with 13,592 investors expected now to receive close to Sh1 billion
  • The government intended to raise at least Sh1 billion on the first world first ever mobile bond.
Central Depository and Settlement Corporation former CEO Rose Mambo with her Nairobi Securities Exchange counterpart Geoffrey Odundo and NSE vice chairman Bob Karina during the re-opening of the M-Akiba retail bond on February 25 /ENOS TECHE
Central Depository and Settlement Corporation former CEO Rose Mambo with her Nairobi Securities Exchange counterpart Geoffrey Odundo and NSE vice chairman Bob Karina during the re-opening of the M-Akiba retail bond on February 25 /ENOS TECHE

Investors in the government’s mobile bond, M-Akiba 2 will receive their final dues after a technical hitch that slightly delayed disbursement process on Monday was resolved.

At least 13,592 investors in the M-Akiba 2 Retail Infrastructure Bond were expected to receive Sh935.9 million Monday.

The Central Depository and Settlement Corporation (CDSC)), which is the issuing and paying agent for The National Treasury said a technical hitch occurred and the investors’ funds were not disbursed to their respective bank accounts or mobile wallets.

 

''The issue has since been resolved and we are now working on disbursement of funds to the 13,592 investors. CDSC wishes to sincerely apologise to the affected investors for the inconvenience caused,’’ the statement issued on Tuesday said.

M-Akiba 2 was first issued on June 30 2017 after a successful pilot phase launch of M-Akiba 1 on 23 March 23, 2017.  

On Tuesday, CDSC released a final interest worth Sh44.6 million and a principal amount Sh891.4 million respectively and was expected to immediately hit investors accounts after three years of waiting.  

M-Akiba 2 Retail Infrastructure Bond Investors had previously received five interest payments on totalling Sh222.8 million.

Investors pocketed Sh157.6 million in the final payout of M-Akiba 1 paid in April to 5,609 investors.

In its time, a total of Sh312.4 million was paid out in interest to all M-Akiba Retail Infrastructure Bond Investors, with Sh1.04 billion raised from the five Bond Issues since 2017. CDSC also recorded a total of 582,572 M-Akiba registrations since the first Issuance in June 2017.

Those who invested in the bond were being paid back their initial investment after one and a half years in addition to the annual interest payments received throughout the period charged at 10 per cent.

 

The government intended to raise at least Sh1 billion on the first world first ever mobile bond.

CDSC CEO Nkoregamba Mwebesa thanked Kenyans who participated in the two M-Akiba Bond issues “with interest and optimism”, saying the initiative achieved its goals.