INVESTMENT VOLUMES HAVE BEEN SIGNIFICANTLY REDUCED
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.