The Kenyan government bond sold through mobile phone, M-Akiba, will be floated in March.
It was initially launched in 2017, but failed to capture the market, raising Ksh247.8 million from two issues from 11,679 out of 303,534 registered subscribers.
This was 24.8 per cent of the intended Ksh1.0 billion with a greenshoe option of a further Ksh3.85 billion in case of a sufficient demand.
M-Akiba has the potential to reach over 30 million registered mobile money account holders in Kenya. It was launched with an aim of broadening investor base and reducing the government borrowing costs.
The low uptake of the bond was attributed by the confusing user interface, poor customer service and customer education.
According to Financial Sector Deepening Africa, there are still significant opportunities to enhance the offering in Kenya and replicate elsewhere drawing on the lessons and recommendations made from the post-issuance study and the lessons learned by the implementers to make it more relevant to the daily reality of citizens aiming to invest in their futures.