Business Daily
Date: 28.03.2017
Page 11
Article size: 179 cm2
ColumnCM: 39.77
AVE: 75577.77
What you need to know about M­Akiba
My aging grandmother the world to offer a mobile investment is backed by the
and other mobile platform for its citizens to trade government, your money will
phone users now in government bonds.
not lose value, which is arguably
have the opportunity to loan
When governments need one of the safest investments
the government money through to raise money for projects, out there. So, barring Kenya
the world's first mobile­only they can't always increase defaulting on its debts, your
government bond, M­Akiba, taxes. Instead, they often investment is safe.
launched last week. Trading issue bonds that you can buy.
You don't have to pay state
in government bonds has for You then receive principal and income tax on the interest you
a long time been the preserve of interest payments for a certain receive every six months.
high net worth individuals and number of years before the
Because M­Akiba is typically
companies that can afford the bond matures.
safer than stocks, you might
minimum Shl00,000.
Depending on your find it useful if you're looking
With the M­Akiba bond, that investment goals, M­Akiba could to retire.
has been reduced to only Sh3, provide a number of advantages
Also, because it pays interest
000 and through your mobile that other investments don't. every six months, it can help
phone and by dialling *889# a
With these types of M­Akiba, generate a steady stream of
Kenyan can now trade from the
you are guaranteed a 10 per income.
comfort of their house.
M­Akiba can be bought and
cent rate of return on your
M­Akiba is basically a long­
sold just like other investments,
investment, in addition to
term security issued by the the lack of maintenance fees such as stocks and corporate
government. First, with the
involved, M­Akiba is extremely bonds.
launch of M­Akiba, Kenya safe investments.
Having a fixed rate 10 per
becomes the first country in
Since your principal cent which is higher than
bank interest rate on your
M­Akiba allows you to budget
for how much income you'll
have to spend as you receive
payments.
Plus, if interest rates fall,
your rate is locked in so you
earn a higher rate than the
market is paying. Of course,
there's always the chance that
interest rates could go up. In
that case, having a fixed rate
hurts you because you're stuck
with the lower rate.
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya