Investing in treasury bonds offers greater returns compared to savings accounts such as M-Shwari and fixed deposit accounts. Investors will be paid interest twice a year. According to The Treasury, at a 10 per cent M-Akiba Interest rate, an investment of Kes 10,000 is set to give investors a return of Kes 500 every six months or 1,000 annually. At the end of the bond's three year maturity period, investors will get their original investment back.
The current bond is an infrastructure bond hence, interest payments to investors are tax-free.
When the bond matures, the principal amount you invested and the interest earned will be paid to you via Mpesa or Airtel Money.
How to Use M-Akiba
- Dial *889# from a Safaricom or Airtel line. These are the only two mobile operators participating at the moment.
- Follow the prompts.
Tips & Warnings
- Registration, trading, and settlement will be done through your mobile phone. There will be no physical documentation for CDS accounts.
- If you miss out on the bond in the primary issue you the option of buying it in the secondary market at the Nairobi Stock Exchange. But, market forces will determine the purchase of the bond in the secondary market.
How to open a CDS account
The National Treasury