OPENING REMARKS BY THE CEO, CDSC MRS. ROSE MAMBO DURING A
MEDIA BRIEFING ON GOVERNMENT RETAIL BOND
M-AKIBA HELD ON SEPTEMBER 28, 2015 AT KICC
Our Chief Guest, the Cabinet Secretary for The National Treasury, Mr. Henry Rotich.
The Principal Secretary for The National Treasury, Dr. Kamau Thugge.
The Governor of the Central Bank of Kenya, Dr. Patrick Njoroge.
The Chairman of the Nairobi Securities Exchange, Mr. Eddy Njoroge.
The Chairman of the Kenya Association of Stockbrokers and Investment Banks, Mr. Jimnah Mbaru.
Directors of the National Treasury present here today, Directors of the Central Bank of Kenya present here today, Members of the Board of Directors of the Central Depository and Settlement Corporation,Members of the Board of Directors of the Nairobi Securities Exchange, and the KASIB Council Members, The Chief Executive of the Nairobi Securities Exchange, Mr. Jeff Odundo,
The Acting Chief Executive of the CMA, Mr. Paul Muthaura,
The Chief Executive of KASIB, Mr. Willie Njoroge
Director, Enterprise Business Unit of Safaricom, Ms. Rita Okuthe,
Distinguished Guests, Members of the Fourth Estate,
Ladies and Gentlemen,
Following the automation of our capital market between 2004 and 2006, it has become evident that technology is an integral part of the growth path for our capital markets.
Robust technology and infrastructure is the backbone of our market and a prerequisite for the development of new products. Between 2006 and 2010 the market had a series of very successful IPOs that brought over 2 million Kenyans to the securities exchange.
CDSC’s tagline “Safer, Faster, Easier” was coined to underscore what we hoped to achieve with the automation of the market. That tagline has never been more true than for the M-Akiba product.
- “Safer”- with a secured principal and a guaranteed return;
- “Faster” - giving investors the ability to act swiftly upon their investment decisions and execute them with ease;
- “Easier”- accessible through your mobile phone in a few easy steps.
CDSC and NSE were contracted by the National Treasury with the mandate to deliver a solution that would enable all Kenyans participate in a low denomination government bond through a mobile app. Working with our
technology partners and mobile money transfer service providers, we are proud to come before you today with a product that is ready for market. The upside potential of a product like M-Akiba and the impact it is likely to have
on increasing the number of investors in the market is significant. We are excited at the opportunity that this product will give ordinary Kenyans to participate in the capital markets in an easy and affordable manner, in addition to giving them the ability to earn good returns on their savings.
Although the investors will only see the app on their phones, in the background our robust market infrastructure will continue to provide the usual support services that ensure the safety and security of investors’ assets. CDSC shall manage the register of bond holders with delegated authority from the Central Bank of Kenya and shall carry out all the normal services that an investor may require with regard to his CDS account and his securities during both the primary offer and secondary trading of the bond. CDSC will also manage the periodic coupon payments and eventual redemption of the bond. On behalf of the Board and Management of CDSC I would like to express our appreciation to the team spearheaded by the National Treasury that has worked tirelessly to put this product together. In many ways, the journey is only just beginning, as we look forward after the launch today to the investor education and promotional activities that will precede the offer of this retail bond to the public, and thereafter the support for secondary trading, coupon payments, redemptions and other ancillary services.
We are grateful to the Government of Kenya for entrusting us with this project, and assure you of our commitment towards ensuring the success of M-Akiba.
Hongera, congratulations to all of us- for once again, Kenya leads the way in bringing innovative solutions for the benefit of its citizens and the growth and development of our Nation.