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Kenya sell government bonds to citizens

By on March 24, 2017

Kenya has become the first country to exclusively sell government bonds to citizensvia their mobile phones.

The government is looking to tap into that network by allowing mobile phone users to trade the government securities across their phones.

The main provider of mobile transactions, M-Pesa – which is Swahili for money – has about 20 million users,

Finance Minister Henry Rotich said the government was initially making a limited offer of 150 million shillings to test the new bond before a bigger offer in June.

The bond, called M-Akiba, can be bought by phone users without any need for a bank account and pays an estimated interest of 10%.

The country’s central bank governor, Patrick Njoroge, said the bond would “dramatically improve the savings culture of our people”.

The country is already a pioneer in the use of mobile money.

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