Sh5bn M-Pesa bond put off over high interest rates

The government has delayed the launch of the affordable M-Akiba bond due to high interest rates in the market.

The date for the launch of the bond that would be sold for as low as S,000 has now been put off indefinitely.

National Treasury Cabinet Secretary Henry Rotich told the Nation that the government is assessing the market before floating the debut Sh5 billion bond.

“We are waiting to see how rates in the market behave before we set an appropriate date,” he said on the sidelines of an energy committee meeting last week.

Government officials had announced that the prospectus would be released on October 16 for the paper to go on sale on October 20.

When launched, individuals will be able to bid with as little as S,000 and a maximum of Sh140,000 for the income tax-free bond.

CS Rotich, however, said the prospectus is not yet complete and the rates have not been set, adding that there were also clearance issues with the Nairobi Securities Exchange.

“We are also looking at (President Uhuru Kenyatta’s) diary to set a date for the official launch so we do not have a tentative date yet,” he said.

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