The introduction of M-Akiba bond is a win for both the government and the public. This means the government is saving more than 2.5 per cent on interest through the M-Akiba bond issue. Assuming a similar interest saving, this would save Sh375 million in one year. The interest rate on offer is also more attractive than what is currently offered by the interest rate law. A tax-free 10 per cent interest rate that was offered by the initial offer is about 14 per cent when you take into account the tax.

Source: The Star April 19, 2017 20:37 UTC