Wednesday, December 10, 2008

CBK lowers t-bill minimum:another investment option

CBK has decided to join other financial entities and mass-target the lower pyramid levels in our society. Its decision to lower the minimum amount required for investing int-bills from ksh1m to Ksh100k will give access to the likes of you and me. It is an excellent savings mobilisation idea but will impact:
  • Banks:who offer next to nothing for fixed deposit accounts.
  • NSE: With a guaranteed 7% per year, some investors might run away from the choppy waters of the NSE
  • Real estate: Possibly especially when one takes into account initial outlay

However, its not an investment option for those wanting to grow their funds aggressively but only for safety purposes.

You'll need to open a CDSC account with CBK , you can buy t-bills once a week (I think its every Thursday) and you get interest paid every 3 months.

Want to know more? Go here...


Kenyanomics said...

Long time.
Could the guaranteed popularity create moral hazard through excessive borrowing?

MainaT said...

Who? Kenyanomics-where have you been?
Gova has a huge deficit which I've been worrying about for a few months. Don't forget the $300m bond float that won't happen now.
Juzi they signalled dropping of rates.

All means we have potential inflationary issues.

Maishinski said...

This is excellent news!

I think its a good move and I shall definitely line up for the Treasury bills.

Better than buying land in Kenya!