ABN - Kenya has begun selling government bonds via mobile phone, in an innovative move that is the first of its kind in the East African nation.
The bond has been christened M-Akiba, which means ‘mobile savings’ in Swahili, and will allow citizens from a much broader pool to invest in government assets.
M-Akiba was launched with a value of US$1.4 million, as a prelude to a $48.5 million bond which will be unveiled in June.
Central bank governor Patrick Njoroge said: “Police officers, primary school teachers or those working in kiosks can actually buy government securities just as they would buy products or transfer money with their phones.
“Frankly if this is not transformational, I don’t know what it is.”
Kenya’s latest fintech invention comes a decade after the launch of M-Pesa, a mobile banking platform, and M-Shwari in 2013, which allowed Kenyan’s to borrow money from their cell phones.