Commercial Bank of Africa (CBA) has announced that it will offer investors of the mobile-phone based bond M-Akiba and exit should they need to sell.
CBA’s status as a market maker for the new bond followed negotiations with the government.
This means that investor who buy the bond will have an exit cushion should they need to quit impromptu.
“They (CBA) will be the buyer to every seller and a seller to every buyer,” said Geoffrey Odundo, the chief executive of the Nairobi Securities Exchange.
About 108,000 Kenyans have registered on their mobile phones to invest in M-Akiba since last month, compared with just 20,000 existing retail investor accounts with the central bank for normal Treasury bonds, showing the potential for M-Akiba to help mobilise savings, Odundo said.
