Kenya’s 4G Capital Plans to Issue Tokenized Bonds

Kenya is one of the leaders in digital financial innovations in Africa. Back in 2007, the country’s major mobile telecom company Safaricom launched a mobile money platform, which has gradually turned into the world’s most successful money transfer service. Last year the government and the central bank issued the world’s first government bonds that are sold only via mobile money platforms.   

It is no surprise cryptocurrencies are quite popular in Kenya, with the volume of weekly cryptocurrency transactions equaling $1.5 million. According to Citibank research, Kenya’s holdings of cryptocurrencies represented 2.3% of its $74 billion GDP in December, the fifth highest in the world.

4G Capital is going to issue tokenized bonds worth about $10 million in April, with a targeted coupon of 10 per cent. The company’s existing institutional and qualified investors will be able to purchase the bonds by paying in Bitcoin or Ether. 

The tokens will be issued on a platform run by Canadian technology company Finhaven. Finhaven will then forward US dollars to Kenya’s Ministry of Finance. Returns will be paid monthly in cryptocurrencies or US dollars. 

According to the company, one of the reasons behind this issuance is the high cost of capital in Kenya.