Treasury bonds to be sold via Mpesa

National Treasury has announced plans to float the first-ever government bond that will be offered exclusively via mobile phone, pointing to the growing relevance of mobile money solutions in the evolving payments space.

National Treasury Cabinet Secretary Henry Rotich says in three weeks Kenyans will have an opportunity to participate in a 5 billion shillings Government Infrastructure Bond.

Speaking in Nairobi, Rotich said the historical development is testament of the government’s commitment to embrace innovation to democratize the uptake of government securities.

Previously, it took an average of two days to buy a government bond, but the use of the mobile money transfer platform would make the process instantaneous.

He says over the years, 98 percent uptake in government bonds has been by institutional investors, with only two percent going to individual investors, which has left out many Kenyans from participating in raising funds for nation building.