Trading in M-Akiba bond via PesaLink: Here’s the procedure to follow

Local investors keen to take in M-Akiba, the government issued retail bond, can do so via PesaLink, the real time interbank money transfer service.

As part of the ongoing efforts to ease access to M-Akiba, local bank account holders signed up on the PesaLink platform, can now conveniently trade the bond round the clock from the comfort of their mobile devices.

The trade of the bond via a dedicated PesaLink short code follows the sealing of a joint partnership between the Kenya Bankers Association’s subsidiary, Integrated Payment Services Limited (IPSL), National Treasury, Central Deposit & Settlement Corporation (CDSC) and Nairobi Securities Exchange (NSE).

Speaking at the launch of the Kshs 1 billion retail infrastructure bond issued by the government to enhance financial inclusion for economic development, IPSL CEO, Jenifer Theuri, said the firm had already received the necessary approvals to run the service.

Bank account holders signed up on the PesaLink service will have higher transaction limits of up to Kshs 999,999 while trading in the M-Akiba bond.

“As IPSL we are proud to be participating in this historical initial offer which also coincides with the launch of the IPSL Alias account number, which are commonly known as Paybill numbers,” Ms Theuri said. “This will be the first time IPSL will be using “Alias account numbers” mapped to a Bank collection account enabled through the NSE’s PesaLink Paybill number “889”.”

Prior to PesaLink’s entry, M-Akiba, was only accessible via the mobile network operators based M-Pesa and Airtel Money platforms.

The M-Akiba Bond was introduced into the market on March 23, 2017 to allow Kenyans be able to buy bonds through the use of their mobile phones enhancing financial inclusion for economic development.

The money raised from the M-Akiba bond will be used for the funding of government infrastructural development projects, both new and on-going. Further, the M-Akiba bond is also aimed at enhancing the savings and investment culture by Kenyans. Kenyan savings is at 11% of GDP while countries like Qatar are at 60%, while Rwanda and Uganda are at 22% each.

To purchase M-Akiba bond via PesaLink, individuals will be required to have registered on NSE MyTrade and follow the M-Akiba Bond Buy process as per the steps below:

1.    Login to your individual Bank channel.

2.    Navigate to PesaLink option.

3.    Select Send to phone.

4.    Type 889 as the mobile number (This is the alias number mapped to M-Akiba collection account which is easier to remember than a 14 digit Bank account number)

5.    Enter Amount.

6.    Enter reason for payment (For M-Akiba Bond, customers will be required to insert their ID numbers).

6.    Afterwards, CDSC through their nominated Bank will confirm payment receipt and issue corresponding security.