Pundit & His Sidekick HK Misled Investors

[Omollo]

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I narrated here how my bank manager had frantically called me to stop me investing in M-Akiba. HK and Pundit rounded up on me.

Though our search engine aint that good, I have managed to extract some of what they wrote as they misled people. This is a warning to people never to listen to Pundit or his sidekick - HK. They are specialists in voodoo economics:
Secondary Market

This will be big and the impact of it will forever change the debt market. What impressed me most its the secondary market feature.

This platform will be run by safaricom the minimum investment is 3000. safari con will charge shs 100 transaction fee, GOK may offer 10% per anum interest. Meaning you will get 300 shs at the end of a year in interest.. then broker fees will be added, plus taxes, etc. so the interest "earned" may end up being as low as 4%

Not a good investment

someone debunk my numbers

Safaricom charges are ksh.15 for the minimum 3k. There no taxes the bond is tax free. The brokers fee if you sell in the secondary market is 0.535%. A return of 10% is very good compared to fixed deposits that earn 5- 7% . Bonds aren't for everyone but for those people who want to save money.

http://www.businessdailyafrica.com/Launch-of-mobile-traded-securities-platform-put-off-again/539552-3432696-ym3q3d/index.html

This is going to be a game changer. Once implemented the government will have an alternative debt option that will eventually lower overall rates. This will also force banks to become creative and develop new products instead of just buying T-bills.  Eventually investment banks will be able to structure debt offering linked to  M-akiba that can be sold via mobile money giving companies small and big another option to raise debt.

Yeah rather than depositing your money in a bank and getting 4% less than CBR rate - you're better off investing in M-Akiba. The key to its success will be the ability to easily re-sell those bonds and cash out at any given time.

This is going to be a game changer. Once implemented the government will have an alternative debt option that will eventually lower overall rates. This will also force banks to become creative and develop new products instead of just buying T-bills.  Eventually investment banks will be able to structure debt offering linked to  M-akiba that can be sold via mobile money giving companies small and big another option to raise debt.

I agree. The key is the liquidity of secondary market.

Yeah rather than depositing your money in a bank and getting 4% less than CBR rate - you're better off investing in M-Akiba. The key to its success will be the ability to easily re-sell those bonds and cash out at any given time.

This is going to be a game changer. Once implemented the government will have an alternative debt option that will eventually lower overall rates. This will also force banks to become creative and develop new products instead of just buying T-bills.  Eventually investment banks will be able to structure debt offering linked to  M-akiba that can be sold via mobile money giving companies small and big another option to raise debt.

[hk]

M-Akiba is a brilliant idea and it hasn't failed. Its only that Kenyans for whatever reason didn't buy the second tranche most likely cause they are jittery about elections or little left over to save. The first tranche was oversubscribed and closed before deadline date. The liquidity is well catered for all one needs to do is use USSD 889 and can sell buy. What would be more indicative is how other saving products are doing.

[Omollo]

[hk]

What's your point? This 5b bond was undersubscribed maybe because of elections . The first tranche was oversubscribed cause mostly likely there were no election jitters.