Kenya’s government led by Uhuru Kenyatta, yesterday finally launched a mobile-traded bond which has been in the works since 2015.

According to Ceoafrica, for as little as $30 (£24), the M-Akiba bond which is aimed at small investors can enable Kenyan mobile users to lend to the government and get paid 10% tax-free interest every six months.

Even though the investment requirement for the M-Akiba bond is very low, government bonds have always been the preserve of the well-to-do, and a major awareness campaign will be required for less investment-savvy individuals to take this up.

If successful, it will shake up financial services by giving small investors alternatives to low interest earning accounts in banks, mobile money wallets, and savings co-operatives.

Apart from encouraging people to save, the platform will provide the Kenyan government with a new source of cheap money that it intends to use to finance large infrastructure projects.

Currently, only 2% of government bonds in Kenya are bought and sold by individual investors.