IN­VEST­MENT VOL­UMES HAVE BEEN SIG­NIF­I­CANTLY RE­DUCED

The Star (Kenya) - - News Business -

The min­i­mum in­vest­ment vol­ume in the bond has been set at Sh3,000 – a ma­jor re­duc­tion from Sh50,000 for T-bonds and Sh100,000 for T-bills. Kenya will be­come the first coun­try in the world to trade bonds on the mo­bile phones, un­der­lin­ing the coun­try’s lead­er­ship in mo­bile money space. The Trea­sury has not made public the tar­geted rate of re­turn for in­vestors in the bond. Deputy Pres­i­dent Wil­liam Ruto had on Oc­to­ber 27, 2015, hinted at a rate of be­tween seven and eight per cent. “We want to re­cruit mil­lions of Kenyans who, to­day, are paid maybe one or two per cent by banks, so that … they too can also be ben­e­fi­cia­ries of what we pay out as gov­ern­ment [ on public debt],” Ruto had said at Villa Rosa Kempin­ski last year. The min­i­mum in­ter­est paid by banks on sav­ings has how­ever gone up to a min­i­mum of seven per cent fol­low­ing the en­act­ment of Bank­ing (Amend­ment) Act, en­forced on Septem­ber 14.

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